F5 Buys NGINX for $670 Million to Boost Multi-Cloud Strategy
F5 acquires the open-source web server company NGINX for $670 million to accelerate its multi-cloud transformation and bridge the gap between NetOps and DevOps. The deal combines F5's application security with NGINX's massive open-source user base.
F5 acquires NGINX for $670 million to accelerate its push into multi-cloud architecture and application services. This purchase brings together F5's enterprise security and performance tools with NGINX's popular open-source web server technology. NGINX previously positions itself as a strong alternative to F5 and reportedly shops itself to other buyers like Citrix before finalizing this deal.
The acquisition comes as F5 experiences slowing revenue growth of just four percent year-over-year. By absorbing NGINX, F5 gains access to a platform that currently powers 375 million websites and boasts 1,500 paying customers. F5's leadership states that this merger bridges the divide between NetOps and DevOps by providing consistent application services across complex cloud environments.
Under the terms of the deal, F5 merges its operations with NGINX and retains the open-source company's key leadership. Current NGINX CEO Gus Robertson and the company's founders all join F5 following the acquisition. The combined entity aims to leverage NGINX's deep credibility in the developer community alongside F5's established enterprise presence to deliver comprehensive multi-cloud solutions.