F5 Networks is acquiring NGINX, a popular web server software for $670 million

2 min read

Yesterday, F5 Networks, the company that offers businesses cloud and security application services, announced that it is set to acquire NGNIX, the company behind the popular open-source web server software, for approximately $670 million. These two companies are coming together to provide their customers with consistent application services across every environment.

F5 has been seeing some stall in its growth lately given that its last quarterly earnings have only shown a 4% growth compared to the year before. On the other hand, NGINX continues to show a 100 percent year-on-year growth since 2014. The company currently boasts of 375 million users with about 1,500 customers for its paid services like support, load balancing, and API gateway and analytics.

This acquisition will enable F5 to accelerate  ‘time to market’ of its services to customers for building modern applications. F5 plans to enhance the current offerings by NGINX using its security solutions and will also be integrating its cloud-native innovations with NGINX’s load balancing technology. Along with these advancements, F5 will help scale NGINX selling opportunities using its global sales force, channel infrastructure, and partner ecosystem.

François Locoh-Donou, President and CEO of F5, sharing his vision behind acquiring NGINX said, “F5’s acquisition of NGINX strengthens our growth trajectory by accelerating our software and multi-cloud transformation”. He adds, “By bringing F5’s world-class application security and rich application services portfolio for improving performance, availability, and management together with NGINX’s leading software application delivery and API management solutions, unparalleled credibility and brand recognition in the DevOps community, and massive open source user base, we bridge the divide between NetOps and DevOps with consistent application services across an enterprise’s multi-cloud environment.

NGINX’s open source community was also a major factor behind this acquisition. F5 will continue investing in the NGINX open source project as open source is a core part of its multi-cloud strategy. F5 expects that this will help it accelerate product integrations with leading open source projects and open doors for more partnership opportunities.

Gus Robertson, CEO of NGINX, Inc, said, “NGINX and F5 share the same mission and vision. We both believe applications are at the heart of driving digital transformation. And we both believe that an end-to-end application infrastructure—one that spans from code to customer—is needed to deliver apps across a multi-cloud environment.

The acquisition is now approved by the boards of directors of both F5 and NGINX and is expected to close in the second calendar quarter of 2019. Once the acquisition is complete, the NGINX founders, Gus Robertson, Igor Sysgoev, and Maxim Konovalov will be joining F5 Networks.

To know more in detail, check out the announcement by F5 Networks.

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