F5 Network stock price soars to record highs after acquiring Volterra for $500 Million
F5 Networks said it will pay $440 million in cash and $60 million in deferred and unvested incentive payments to acquire could-management startup Volterra. Interestingly, Volterra was founded only last year when it raised $50 million.
According to François Locoh-Donou, the president and chief executive of F5 Networks, said his company will work to integrate Volterra’s f products in his company’s portfolio.
“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.
Volterra’s founder and CEO Ankur Singla said:
“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.”
Volterra represents another major acquisition for F5 Networks after buying Shape Security for $1 billion and NGINX for $670 million.Technical analysis: Shares soar to record highs
F5 Networks stock price closed last week 8.7% higher. On Friday, in particular, shares closed 6.19% higher after surging more than 11% to trade above the $200.00 mark for the first time ever.F5 Network daily chart (TradingView)
The stock price rotated lower on profit-taking to close the week at $191.24. Any further decline in stock price towards the previous all-time high near the $180.00 handle will be used as a buying opportunity.Summary
F5 Networks announced the acquisition of Volterra startup for $500 million to send its shares soaring to record highs.
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