F5 Networks To Buy Privately Held Shape Security In $1 Bln Deal

(RTTNews) - F5 Networks Inc. (FFIV) agreed to buy all issued and outstanding shares of the privately held Shape Security for a total enterprise value of about $1 billion in cash.

The transaction is expected to close in the first calendar quarter of 2020.

Upon closing of the acquisition, Derek Smith, and the leadership team will join F5 in key management roles. Shape will remain located in their current Santa Clara headquarters.

F5 expects to achieve breakeven non-GAAP earnings per share within 24 months of closing the acquisition and anticipates that the combination will be accretive to free cash flow per share within 12 months of closing.

F5 expects to fund the transaction through cash on its balance sheet and $400 million in a Senior Unsecured Term Loan A.