Networking application services giant F5 Networks has announced it will buy fraud protection specialist Shape Security in a $1bn deal, which will be the largest in its 23 year history.
F5, which logged $2.42bn in revenues in its FY 2019, says that its strategy is to provide end to end security and fraud protection, utilising Shape Security's AI and machine learning capabilities.
F5 President and CEO François Locoh-Donou said the Seattle-based vendor is confident that partners will benefit from being able to better secure their customer's critical applications.
"To drive maximum business value and the best experiences for their customers, these apps need to perform flawlessly while protecting data security and user privacy," he said.
"When a website or application experience is degraded by web fraud and abuse, the result is lost revenue, lost brand equity, and customers jumping ship to the competition."
California-headquartered Shape Security was privately-owned.
It specialises in protecting enterprise companies against threats such as credential-stuffing, when stolen passwords from third-party data breaches are used to take over online accounts.
Its merger is expected to close in the first quarter of 2020, funded by cash and $400m in financing.
F5 also bought DevOps and API management firm NGINX for $670m in March.
In a letter to employees, Locoh-Donou said the board's 2019 acquisitions will transform the company to become "absolutely essential to every digital organisation in the world".
"When you combine F5 and NGINX's expertise powering over half of the world's applications across all types of environments with Shape's insight from mitigating one billion application attacks per day, you have a company that knows how to secure more applications - and more value - than any company in the industry."
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