F5 Networks has announced that it has signed a definitive agreement with Shape Security under which the former is going to acquire the latter. According to the agreement, F5 is going to acquire all the issued and outstanding shares of the privately held Shape. The enterprise value of the deal is $1 billion (approximately) in cash.
The Mountainview, CA-based Shape Security is a leading security company that protects the largest airlines, retailers, banks and government agencies. They specialize in sophisticated bot, fraud, and abuse defense. Shape’s platform uses artificial intelligence (AI) and machine learning supported by cloud-based analytics to protect its clients.
F5 Networks and Shape Security together will be able to offer comprehensive, end-to-end application security which could save billions of dollars that are lost to fraud and affected due to disruptions to the critical online services.
Derek Smith, Co-Founder and CEO of Shape said: “Now, we look forward to the opportunity to deeply integrate into F5’s platform for application delivery and security—F5 provides the optimum traffic flow insertion point for Shape’s industry-leading online fraud and abuse prevention solutions. This, combined with F5’s global go-to-market scale, means we can jointly protect significantly more customers’ applications and users from sophisticated attacks and malicious traffic.”
After the completion of the acquisition, Derek Smith and the leadership team are joining F5 in management roles.
The acquisition is subject to regulatory checks and closing conditions but it has been approved by the boards of directors of both F5 and Shape. The acquisition is expected to be closed in the first quarter of 2020.