Seattle-based app security and delivery company F5 Inc. (Nasdaq: FFIV) is acquiring Lilac Cloud, an app delivery company headquartered in Cupertino, California.
The companies aren't disclosing financial terms of the deal, which was announced on Tuesday with F5's first quarter results for fiscal 2023. F5 said the deal should close in the upcoming quarter.
Lilac helps with services such with app downloads, app security, video streaming and analytics, among others. The company says its team has experience in networking, high-performance systems and cloud services. An F5 spokesperson said Lilac has 26 employees, and F5 plans to extend offers to most of them. The companies will decide what to do with the Lilac brand after the deal closes.
Austin-based venture capital firm 8VC is an investor in Lilac. 8VC has invested in companies like the telehealth company Hims and Elon Musk's tunneling company The Boring Co.
On a call Tuesday with investors, F5 CEO François Locoh-Donou said the company wanted to build traction with its security offerings, which the company launched about a year ago.
The acquisition served "to in-source that technology and the team, in order to be able to secure the offering for the longer term," Locoh-Donou said on the call. "So we're pretty excited about the team joining us and being able to accelerate our innovation on that front."
F5, founded in 1996, offers services in app security, fraud prevention, network automation and app troubleshooting. The company went public in 1999. In October, the company laid off about 100 employees. It had 7,050 employees at the end of the quarter, according to the F5 spokesperson.
F5's recent acquisitions include Volterra, an app security and deployment company F5 acquired in January 2021 for about $500 million. In October 2021, F5 closed the $68 million acquisition of the cloud security company Threat Stack.
In its quarterly earnings, F5 said it generated $700 million in revenue during the first quarter of fiscal 2023, up from $687 million during that same period the year before.
