Multi-cloud application services company, F5, has acquired privately held NGINX for a total enterprise value of approximately $670 million. The acquisition by F5 is meant to bridge the divide between NetOps and DevOps with consistent application services across an enterprise’s multi-cloud environment. Upon closing of the acquisition, F5 will maintain the NGINX brand.
“F5’s acquisition of NGINX strengthens our growth trajectory by accelerating our software and multi-cloud transformation,” said François Locoh-Donou, President & CEO of F5. “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.”
F5 will maintain the brand with current NGINX CEO, Gus Robertson, and founders, Igor Sysoev and Maxim Konovalov, joining F5 to continue to lead NGINX. Mr. Robertson will join F5’s senior management team, reporting to François Locoh-Donou. F5 will maintain NGINX’s operations in San Francisco, California and other locations globally.
“NGINX and F5 share the same mission and vision. We both believe applications are at the heart of driving digital transformation,” said Gus Robertson, CEO of NGINX. “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. I’m excited to continue this journey by adding the power of NGINX’s open source innovation to F5’s ADC leadership and enterprise reach. F5 gains depth with solutions designed for DevOps, while NGINX gains breadth with access to tens of thousands of customers and partners.”
Software Load Balancing, Integration
F5 would enhance NGINX’s current offerings with F5 security solutions and will integrate F5 cloud-native “innovations” with NGINX’s software load balancing technology, accelerating F5’s time to market of application services for “modern,” containerized applications. F5 would also leverage its global sales force, channel infrastructure, and partner ecosystem to scale NGINX selling opportunities to the enterprise.
“We believe every organization can benefit from the agility and flexibility enabled by modern technologies without compromising on security, manageability, and reliability,” added Mr. Locoh-Donou. “The combined company will enable every customer—from the app developer to the network engineer to the security specialist—with the tools they need to ensure their apps are available and secure across every platform, from the enterprise data center to private and public clouds.”
F5 would recognize the trust that the open source user community has in NGINX’s technology. Open source is a core part of F5’s multi-cloud strategy and a driver for F5’s next phase of innovation. As such, F5 would be committed to continued innovation and increasing investment in the NGINX open source project to empower NGINX’s widespread user communities. F5 expects the combination with NGINX will accelerate its product integrations with leading open source projects and will enhance its strong technology partnerships with open source vendors.