Seattle-based F5 Networks, one of the biggest players in the app-services business, has finalized the largest deal in its 23-year history with the $1 billion acquisition of security-services firm Shape Security, the company announced Friday.
The deal beefs up the security offerings at F5, which helps companies manage their cloud-based applications, or apps. Shape Security, based in Santa Clara, California, uses sophisticated analytics to determine whether a user accessing an app is a legitimate human customer or a potentially fraudulent bot. Shape Security, which employs 370 workers, says it detects more than a billion “fake, nonhuman transactions” a day.
Under the all-cash deal, which was announced in December and closed Friday, Shape Security becomes a product group within F5, bringing F5’s total workforce to 5,700 worldwide. An F5 spokesperson said no layoffs were planned at either company as part of the acquisition but noted that F5 “will work to carefully determine if there are changes in roles we need to address.”
F5 reported $428 million in net income on sales of $2.24 billion for the 12 months ending Sept. 30, 2019.