Cloud security firm Threat Stack acquired by F5 for US$68m
F5, a leader in offering networking and application security services, is acquiring cloud security company Threat Stack for US$68 million.
F5’s application and API protection solutions combined with Threat Stack’s cloud security capabilities and expertise will help to enhance visibility across application infrastructure and workloads, making it easier for customers to adopt consistent security in any cloud.
“Applications are the backbone of today’s modern businesses, and protecting them is mission critical for our customers,” said Haiyan Song, EVP of Security at F5. “Threat Stack brings technology and talent that will strengthen F5’s security capabilities and further our adaptive applications vision with broader cloud observability and actionable security insights for customers.”
Growing threat for cybercrimes
Threats surrounding today’s digital experiences are growing and applications are a focal point for cybercriminals. Cybersecurity Ventures expects global cybercrime costs to grow by 15% per year over the next five years, reaching USD$10.5 trillion annually by 2025, up from USD$3 trillion in 2015.
Cyber threats have expanded from targeting and harming computers, networks, and smartphones, to people, cars, railways, planes, power grids, and other important infrastructures. Many of these things are connected to corporate networks in some fashion, further complicating cybersecurity.
By 2023, there will be 3 times more networked devices on Earth than humans, according to a report from Cisco. And by 2022, 1 trillion networked sensors will be embedded in the world around us, with up to 45 trillion in 20 years.
These experiences are increasingly powered by applications distributed across multiple environments and deeply interconnected through APIs. This significantly expands potential entry points for attackers and requires greater visibility and context to identify and neutralise threats. Organisations face the daunting challenge of accelerating digital innovation to stay competitive while mitigating a widening range of sophisticated adversaries and growing complexity.
F5’s steps to secure customers
F5’s mission is to power adaptive applications that enable customers to secure and deliver extraordinary digital experiences. Threat Stack’s proactive risk identification and real-time threat detection combined with the breadth of F5’s application insights and controls will accelerate the delivery of this capability for their customers.
F5 expects to deliver revenue in the range of $660 million to $680 million for the current quarter and said the new acquisition will add about $15 million in revenue for the fiscal year 2022, with no change to F5's previously stated operating margin targets for the fiscal year 2022. The deal is expected to be finalised in F5's first-quarter fiscal year 2022, ending December 31, 2021.
