App delivery services provider F5 Networks has agreed to acquire US-based anti-fraud technology developer Shape Security in a $1bn deal that will enable corporates Alphabet, Hewlett Packard Enterprise (HPE), JetBlue and SingTel to exit.
Shape’s software utilises artificial intelligence, machine learning and analytics helps protect businesses from online attacks and fraud instituted through bots capable of bypassing conventional barriers.
François Locoh-Donou, president and CEO of F5, said: “With Shape, we will deliver end-to-end application protection, which means revenue generating, brand-anchoring applications are protected from the point at which they are created through to the point where consumers interact with them – from code to customer.
“Beyond opening a fast-growing $4bn adjacent market, Shape’s machine learning and AI-powered capabilities will scale and extend F5’s broad portfolio of application services and expand our ability to optimise and protect customers’ applications in an increasingly complex multi-cloud world.”
The deal comes in the wake of $173m in funding, including a $5.8m series A round in 2012 that included GV, an early-stage vehicle for internet and technology conglomerate Alphabet, in addition to Kleiner Perkins Caufield and Byers (KPCB), TomorrowVentures and Baseline Ventures.
GV returned for a $20m series B round the following year that was led by Venrock and backed by KPCB, TomorrowVentures, Allegis Capital and Enrique Salem. The first five joined Norwest Venture Partners (NVP) and Sierra Ventures for a $40m series C in 2014.
Shape raised $40m in a 2016 series D round featuring GV, enterprise technology producer HPE’s Hewlett Packard Pathfinder unit, KPCB, Baseline Ventures, NVP, Venrock, TomorrowVentures, Northern Light Ventures, Epic Ventures, EDBI and Eric Schmidt.
Airline JetBlue and telecommunications firm SingTel took part in a $26m round in November 2018 through their JetBlue Technology Ventures and Singtel Innov8 units, investing with NVP, Kleiner Perkins, Venrock, Baseline Ventures, TomorrowVentures, Allegis Capital, Epic Ventures, Raging Capital and Focus Ventures.
The company added $51m in a September 2019 series F round led by C5 Capital that also featured JetBlue Technology Ventures, HPE, Kleiner Perkins, NVP, Focus Ventures, Epic Ventures and Top Tier Capital Partners, at a $1bn pre-money valuation.
F5 had already paid $670m to acquire app development technology provider Nginx in March this year, enabling coprorate venturing vehicle Telstra Ventures to exit.
