Virtualization Technology News and Information
F5 Enhances Cloud Security Portfolio with Acquisition of Threat Stack

F5 announced a definitive agreement to acquire privately held Threat Stack, a leader in cloud security and workload protection. F5's application and API protection solutions combined with Threat Stack's cloud security capabilities and expertise will enhance visibility across application infrastructure and workloads, making it easier for customers to adopt consistent security in any cloud.

"Applications are the backbone of today's modern businesses, and protecting them is mission critical for our customers," said Haiyan Song, EVP of Security at F5. "Threat Stack brings technology and talent that will strengthen F5's security capabilities and further our adaptive applications vision with broader cloud observability and actionable security insights for customers."

Threats surrounding today's immersive digital experiences are growing and applications are a focal point for cybercriminals - attacks, fraud, and disrupted customer experiences cost businesses more than $100 billion a year. These experiences are increasingly powered by applications distributed across multiple environments and deeply interconnected through APIs. This significantly expands potential entry points for attackers and requires greater visibility and context to identify and neutralize threats. Organizations face the daunting challenge of accelerating digital innovation to stay competitive while mitigating a widening range of sophisticated adversaries and growing complexity.

F5's mission is to power adaptive applications that enable customers to secure and deliver extraordinary digital experiences. A core tenet of adaptive applications is their capacity to protect themselves by detecting and mitigating threats in real time. Threat Stack's proactive risk identification and real-time threat detection combined with the breadth of F5's application insights and controls will accelerate the delivery of this capability for our customers.

Transaction Details

F5 will acquire all issued and outstanding shares of Threat Stack, a private company headquartered in Boston, for $68 million in purchase consideration, to be financed with balance sheet cash. The transaction is expected to be immaterial to F5's financial results, adding approximately $15 million in revenue for fiscal year 2022 with no change to F5's previously stated operating margin targets for fiscal year 2022.

The acquisition is subject to customary closing conditions and is expected to close in F5's first quarter fiscal year 2022, ending December 31, 2021.

Published Monday, September 20, 2021 9:28 AM by David Marshall
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