Cybersecurity technology producer F5 Networks has agreed to acquire US-based cloud services platform developer Volterra in a $500m deal allowing conglomerate Itochu, software provider Microsoft and electronics manufacturer Samsung to exit.
The transaction will consist of approximately $440m in cash and $60m in deferred consideration and assumed unvested incentive compensation for Volterra’s employees.
Volterra has built a distributed cloud services platform that allows businesses to connect, secure and operate applications across multiple clouds and in edge computing. It will help F5 in developing an app-driven edge platform for enterprises and cloud service providers.
The company emerged from stealth in late 2019 with $50m in equity funding from corporate venturing units Itochu Technology Ventures, M12 and Samsung Next in addition to venture capital firms Khosla Ventures and Mayfield Fund.
Ankur Singla, Volterra’s founder and chief executive, said: “I am excited to work closely alongside [F5 president and CEO François Locoh-Donou], and the F5 team to help pioneer the evolution of the edge to deliver more adaptive, dynamic application experiences for all of our customers.
“With our platform, we will extend F5’s application security leadership to the edge, thereby expanding our combined reach in the fastest growing segment of F5’s $28bn 2023 total addressable market.”
Foros is financial adviser to F5 on the deal while Skadden, Arps, Slate, Meagher & Flom is legal adviser. Goodwin Procter is legal adviser to Volterra.
