F5 Networks, Inc. (NASDAQ: FFIV), a Seattle, WA-based company that specializes in application services and application delivery networking, is to acquire all issued and outstanding shares of Shape Security, a Santa Clara-based online fraud prevention platform, for a total enterprise value of approximately $1 billion in cash.
This acquisition brings together F5’s expertise in protecting applications across multi-cloud environments with Shape’s fraud and abuse prevention capabilities to transform application security. Together, the two companies provide organizations with comprehensive, end-to-end application security.
Upon closing of the acquisition, Shape’s CEO Derek Smith and the leadership team will join F5 in key management roles. The company will remain located in their current Santa Clara headquarters.
Shape uses AI-powered automation and fraud detection capabilities to distinguish between human and automated traffic and defend some of the world’s largest enterprises against cyber-security initiated fraud against their online applications. Its fraud prevention platform detects and blocks up to 1 billion fraudulent or unwanted transactions daily, while keeping 200 million legitimate human logins and other interactions safe. The company provides omnichannel protection for web applications, mobile applications and API interfaces while its mobile SDK is deployed on more than 200 million iOS and Android devices worldwide.
Shape serves large banks, airlines, retailers, and government agencies.