F5 Networks Buys Shape Security for $1 Billion to Block Automated Fraud
F5 acquires Shape Security for roughly $1 billion to combine application delivery with advanced bot and credential-stuffing protection. The deal unites two companies that frequently serve the same enterprise customers.
F5 spends approximately $1 billion to acquire Shape Security, a startup that specializes in stopping automated attacks like credential stuffing. Shape protects major U.S. banks, airlines, and retailers by securing their consumer-facing websites and mobile apps from automated fraud and abuse.
The acquisition allows F5 to offer end-to-end application protection that spans from the initial code creation all the way to the customer interaction point. Shape CEO Derek Smith notes that the two companies frequently encounter each other in the marketplace, making this a natural fit to build a single, comprehensive security platform.
This purchase marks the second major deal for F5 this year following its $670 million acquisition of NGINX in March. The Shape Security transaction is set to close in mid-2020 pending regulatory approval, at which point Smith joins the F5 management team and Shape employees integrate into F5 while staying at their Santa Clara headquarters.