F5 Networks to buy NGINX for $670m

F5 Networks to buy NGINX for $670m

François Locoh-Donou f5 Networks.jpg

F5 Networks (F5) has entered into a definitive agreement to acquire all issued and outstanding shares of NGINX, a company that builds technologies for developing applications, for approximately $670 million.

“F5’s acquisition of NGINX strengthens our growth trajectory by accelerating our software and multi-cloud transformation,” said François Locoh-Donou (pictured), president & CEO of F5 Networks. “By bringing F5’s world-class application security and rich application services portfolio for improving performance, availability, and management together with NGINX’s leading software application delivery and API management solutions, unparalleled credibility and brand recognition in the DevOps community, and massive open source user base, we bridge the divide between NetOps and DevOps with consistent application services across an enterprise’s multi-cloud environment.”

Together F5 Networks will enhance NGINX’s current offerings with its security solutions and will integrate its cloud-native innovations with NGINX’s software load balancing technology. This in turn will accelerate F5’s time to market of application services for modern, containerised applications. Additionally, F5 will also leverage its global sales force, channel infrastructure and partner ecosystem to scale NGINX commercial opportunities to enterprises.

“NGINX and F5 share the same mission and vision,” added Gus Robertson, CEO of NGINX. “We both believe applications are at the heart of driving digital transformation. And we both believe that an end-to-end application infrastructure—one that spans from code to customer—is needed to deliver apps across a multi-cloud environment. I’m excited to continue this journey by adding the power of NGINX’s open source innovation to F5’s ADC leadership and enterprise reach. F5 gains depth with solutions designed for DevOps, while NGINX gains breadth with access to tens of thousands of customers and partners.”

NGINX’s active open source community is one of the most attractive benefits of the merger, with F5 recognising the value in the trust that the user community has in NGINX’s technology. Open source is a core part of F5’s multi-cloud strategy and according to the company a driver for F5’s next phase of innovation. As a result, says that it will continue to innovate and increase investment in the NGINX open source community.

At closing, F5 will operate the NGINX brand. Robertson, along with NGINX founders Igor Sysoev and Maxim Konovalov, will join F5 and will continue to lead NGINX. Robertson will join F5’s senior management team, reporting to François Locoh-Donou.