Another Major Acquisition
F5 Networks will pay $440 million in cash and $60 million in deferred and unvested incentive payment. Interestingly, Volterra startup launched in 2019 after receiving $50 million in investments from various companies, including Khosla Ventures and Mayfield, as well as strategic investors like Microsoft’s venture fund M12 and Samsung Ventures.
François Locoh-Donou, president and chief executive of F5 said Voltera’s business solutions are expected to be integrated into his company’s line of products. The deal is expected to close at the end of March, after receiving regulatory approval.
“With Volterra, we advance our Adaptive Applications vision with an Edge 2.0 platform that solves the complex multi-cloud reality enterprise customers confront. Our platform will create a SaaS solution that solves our customers’ biggest pain points,” he said.
The demand for Volterra’s product has seen a particular increase during the COVID-19 pandemic as companies were forced to shift their operations to the cloud, said the company’s founder and CEO Ankur Singla.
“When we started Volterra, multi-cloud and edge were still buzzwords and venture funding was still searching for tangible use cases. Fast forward three years and COVID-19 has dramatically changed the landscape — it has accelerated digitization of physical experiences and moved more of our day-to-day activities online.
This is causing massive spikes in global Internet traffic while creating new attack vectors that impact the security and availability of our increasing set of daily apps,” Singla said.
Singla also said he believes Volterra’s strengths will serve well within F5’s business product line. The buyout of Volterra is among F5’s biggest acquisitions over the past two years, along with the purchases of Shape Security for $1 billion and NGINX for $670 million.
When the company announced the acquisition, F5 Networks said it expected the deal to boost the revenue growth and lift its guidance. The application delivery networking company also reiterated its plan to return $1 billion to shareholders in the following two years.
F5 said it expects revenue of between $623 to $626 million in the first quarter fueled by software revenue growth.
F5 Networks announced the $500 million acquisition of multi-cloud management company Volterra. The startup’s Edge solution, which allows viewing of security, operations, and management components, is expected to integrate into F5’s product line.
About the Author
Avi Ben Ezra is the Chief Technology Officer (CTO) and Cofounder of SnatchBot and SnatchApp (Snatch Group Limited). He leads the Group’s long-term technology vision and is responsible for running all facets of the tech business which includes being the architect of the platforms and UI interfaces.