Edge computing platform provider Fastly agreed yesterday to purchase US-based web cybersecurity technology developer Signal Sciences in a $775m cash-and-stock transaction that will allow media company O’Reilly to exit.
The deal is made up of $200m in cash and $575m in shares of Fastly, which has a current market capitalisation of roughly $9.7bn. The company had raised approximately $62m since being founded in 2014.
Signal Sciences is the creator of a programmable cybersecurity product designed to protect web applications. Its technology is used on more than 40,000 applications and its customers include Twilio, SendGrid and DoorDash.
The company’s technology will enhance Secure@Edge, a product Fastly intends to launch that will help businesses securely pursue digital transformation.
Joshua Bixby, Fastly’s CEO, said: “Together with Signal Sciences, we will give developers modern security tools designed for the way they work. This new solution will integrate with our Compute@Edge platform, accelerating the adoption of edge computing, while simultaneously solving for modern security challenges.
“We look forward to working with the talented team at Signal Sciences as we continue to innovate and deliver revolutionary security and edge-computing solutions together.”
O’Reilly’s corporate venturing unit, OATV, co-led Signal Sciences’ $2m seed round with Harrison Metal in 2014, the deal preceding a $9.7m series A led by Index Ventures two years later.
CRV led a $15m series B round for the company in 2017 that included OATV, Harrison Metal and Index Ventures. All the series B participants returned for a $35m series C in February 2019 that was led by Lead Edge Capital.
Morgan Stanley and Union Square Advisors are Fastly’s financial advisers for the deal while Cooley is legal adviser. Signal Sciences has retained Qatalyst Partners as financial adviser and Goodwin Procter as its legal adviser.
