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With the acquisition, Volterra allows a new Edge 2.0 open edge platform that will change F5’s pioneering position in enterprise application security and delivery.
FREMONT, CA: F5 Networks, the pioneer in application security and delivery, and Volterra, the universal edge-as-a-service platform, sign an agreement under which F5 will acquire all issued and outstanding shares of Volterra for about $440 million in cash and about $60 million in deferred consideration and assumed incentive compensation to founders and employees. In addition to Volterra’s technology platform, F5 generates an edge platform developed for enterprises and service offerers that will be security-first and app-driven with a limitless scale.
About the transaction, F5 raised its Horizon 2 and long-term revenue outlook. It reiterated its Horizon 2 operating targets, comprising its commitment to achieving double-digit non-GAAP earnings per share growth. The firm also reiterated its commitment to return $1 billion of capital over the next two years, comprising the initiation of a $500 million scaled share repurchase in the fiscal year 2021. F5 also launched a preview of its first-quarter fiscal year.
Current edge solutions are inadequate for modern enterprise customers. It is time to break out of closed edge systems that only perpetuate the hurdle of building, running, and securing apps. With Volterra, F5 advances its adaptive applications vision with an Edge 2.0 platform that remediates the complex multi-cloud reality enterprise customers confront. The platform will create a SaaS solution that solves customers’ issues. The success of F5’s software change has put the firm in a position to offer on the potential of Edge 2.0 and redefine its competitive position.
With the Volterra platform, the company will extend F5’s application security leadership to the edge, thereby expanding its combined reach in the fastest-growing segment of F5’s $28 billion 2023 total addressable market. Volterra allows a new Edge 2.0 open edge platform that will alter F5’s pioneering position in enterprise application security and delivery, tackling the hurdles inherent with first-generation edge solutions.
The boards of directors of F5 and Volterra have approved the transaction. The transaction is forecasted to complete in the first quarter of 2021, upon closing of the transaction. Volterra leadership team will join F5 in vital management roles. Volterra will remain located in its present Santa Clara headquarters.