Web applications firm F5 Networks is set to acquire edge-as-a-service platform Volterra in a $440 million deal. In addition, the acquisition will include $60 million in deferred payments and incentives for Volterra’s founders and employees.
The partnership will accelerate Volterra’s deployment of its Edge 2.0 open edge platform, which is set to deliver best-in-class enterprise application security.
The Edge 2.0 platform will also be app-driven, promising to remove multi-cloud complexity and provide unlimited scale by enabling all services to be run on any server, across all clouds and data centers.
Volterra’s founder Ankur Singla added that the coronavirus pandemic, and the rapid uptake of digital services that it has driven, has meant that the need for his company’s Edge 2.0 solution has never been greater. With F5 and Volterra working in harmony, the app security-as-a-service market now has a powerful new player.
For F5, the purchase was followed by the company raising its long-term revenue outlook and reiterating its pledge to return $1 billion of capital over the next two years. The Volterra acquisition might be the last big purchase we see from the firm for a little while after F5 also spent more than $1.6 billion on two major acquisitions in 2019.
Boards of directors at both F5 and Volterra have approved the acquisition, but regulatory approval still needs to be achieved. The deal is expected to close in the first quarter of this year.
“Current edge solutions are simply inadequate for today’s enterprise customers. It’s time to break out of closed edge systems that only perpetuate the pain of building, running, and securing apps,” François Locoh-Donou, President and CEO of F5, explained.
“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. The success of F5’s software transformation has put us in a position to deliver on the potential of Edge 2.0 and redefine our competitive position.”