F5, a leader in offering networking and application security services, has announced that it is going to acquire cloud security firm Threat Stack for an apparent amount of $68 million. The deal, however, will be subjected to M&A rules prevailing in North America and will be immaterial to F5’s financial results for this year and might close by first half of fiscal year of 2022.
Threat Stack that offers cloud security capabilities and expertise will support F5’s vision of bolstering its application and API protection solutions portfolio.
“Threat Stack will bring in the technology and talent that will assist strengthen F5’s security capabilities reaching the vision of its customers,” said Haiyan Song, EVP of Security.
As the digital world is constantly transforming, application use among companies in distributed manner and via interconnected APIs is growing, thus exposing them to cyber attacks, frauds and losses ranging from $80bn to $100bn.
F5’s acquisition of Threat Stack will help ease the daunting task of growing complexity among digital sophistication, thus delivering an extraordinary digital experience to customers.
Threat Stack’s technology has the ability to proactively identify real-time threats, and F5 wants to use the tech to speed up the delivery of risk identification capabilities to all its customers.
Note 1- Foros acted as a financial advisor to F5 and Skadden, Slate, Meagher & Flom LLP along with Arps acted as legal advisors in the deal.
Note 2- In January 2020, F5 acquired another cloud security company, Volterra, for $5200 million and the latest deal is the second highest if financial figures are considered.
Note 3- Threat Stack has till date worked on offering technology that helps customers leverage business benefits through cloud based threat monitoring solutions.
