Summary
F5, Inc. (FFIV) announced on December 24, 2019, its entry into a definitive agreement to acquire Shape Security, Inc. for an aggregate consideration of approximately $1.028 billion in cash. This strategic acquisition is expected to enhance F5's security offerings and broaden its market reach within the application security space. The transaction is subject to customary closing conditions, including regulatory approval, and is anticipated to close in the first calendar quarter of 2020. F5 has secured a commitment for a $400 million senior unsecured term loan facility to help finance the acquisition. This move signifies F5's commitment to expanding its portfolio and strengthening its competitive position in the cybersecurity market.
Key Highlights
- 1F5 to acquire Shape Security for approximately $1.028 billion in cash.
- 2The acquisition is expected to bolster F5's security solutions and market presence.
- 3Transaction is subject to customary closing conditions, including antitrust review.
- 4Closing is anticipated to occur in the first calendar quarter of 2020.
- 5F5 has secured a $400 million debt commitment to partially fund the acquisition.
- 6Shape Security will become a wholly-owned subsidiary of F5 upon completion of the merger.
Frequently Asked Questions
The acquisition of Shape Security is aimed at significantly enhancing F5's security capabilities and expanding its market position within the application security sector. Shape Security is known for its advanced solutions in areas like bot mitigation and fraud prevention, which are expected to complement F5's existing offerings.
F5 plans to finance the acquisition through a combination of cash and a new senior unsecured term loan facility of $400 million, as per a commitment letter from JPMorgan Chase Bank, N.A. and Bank of America, N.A. The remaining portion of the $1.028 billion consideration will likely be funded by existing cash or other means.
The transaction is subject to customary closing conditions, which include obtaining necessary regulatory approvals, such as the expiration or termination of the waiting period under the Hart Scott Rodino Antitrust Improvements Act. The merger also has a termination date of April 15, 2020, if not completed by then.
F5 expects the acquisition to close in the first calendar quarter of 2020. The agreement includes provisions for termination if the merger is not consummated by April 15, 2020.