In a bid to strengthen its security service,
F5 Networks Inc.
) is set to acquire Versafe Ltd., a provider of web anti-fraud,
anti-phishing, and anti-malware solutions. Financial details of
the deal were not disclosed. The acquisition is not likely to
have a material impact on its operating results.
The acquisition will enable F5 to provide its customers with
secure access to data and applications, which in turn will create
a protected business environment. Versafe technology provides
complete, real-time detection and protection for its users,
thereby reducing the risk of theft of intellectual property and
money sensitive data and identity.
Additionally, Versafe provides advisory security service and
remediation through its Security Operations Center (SOC), which
will enhance F5's security solutions portfolio.
Versafe Ltd. develops security applications for identity theft
and online fraud prevention applications. Specifically, the
Versafe security suite provides anti-phishing, anti-trojans,
anti-pharming and brand protection solutions. The company also
provides fraud prevention, operation center, forensics,
governance, risk and compliance services.
F5 Networks reported total revenue of $370.3 million in the third
quarter of 2013, up 5.0% from $352.6 million in the year-ago
period. Improvement in revenues was mainly due to broad-based
strength in end markets and geographical regions.
In Feb 2013, F5 Networks acquired LineRate Systems, a
privately-held networking services provider. The acquisition
strengthens F5's exposure to the networking market. The company
is a key player in the Software-defined Networking (SDN) market
and the acquisition is expected to pave the way for F5's
penetration within the segment.
Better execution and focus on enterprise and service providers
have placed F5 Networks well in the application delivery
controller (ADC) market. F5 Networks is also keen on expanding
its cloud exposure.
However, key networking players such as
) are also increasing exposure in the SDN segment, so only time
will tell if F5 is able to maintain its niche position.
Currently, F5 Networks has a Zacks Rank #3 (Hold).
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