Threat Stack, a cloud security and workload protection startup, was acquired for $68 million by F5 Networks, which claims it would expand its cloud security portfolio by improving visibility throughout the application architecture.
- Wining game: F5’s VP of Product Marketing Mark Weiner called the deal “a win-win” for both parties and their customers. F5 has “a lot of great traditional web application security components,” he said. “But seeing inside of these very modern workloads, the app infrastructure, the app workloads themselves, really is an extra benefit to our customers, particularly as they’re distributed.” And this is the boost that Threat Stack’s technology will provide.
- Tap in: Threat Stack will be able to tap into F5’s resources, including access to the company’s tens of thousands of clients, according to Weiner. Threat Stack was created in 2012 and is situated in Boston. According to Crunchbase, has raised $72 million in six fundraising rounds. F5 estimates that the translation will boost revenue by $15 million in the fiscal year 2022.
- Risk manager: Threat Stack provides risk identification and real-time threat detection across cloud workloads, and its Cloud SecOps program allows companies to manage their security tools and actions. To boost observability and actionable security insights, F5 plans to integrate its application and API protection products with Threat Stack’s cloud-native application protection capabilities as part of the acquisition.
- Interconnections: According to F5, cybercriminals target applications, and assaults, fraud, and interrupted user experiences cost organizations more than $100 billion per year. Organizations’ infrastructure, including security methods, must change as apps are spread across numerous environments and tightly interconnected through APIs, according to Weiner.
- Purchases: F5 had bought three companies in the previous three years prior to Threat Stack. In early 2019, F5 purchased DevOps company NGINX for $670 million, allowing the vendor to grow into open-source, multi-cloud services. F5 bought Shape Security for $1 billion later that year, bringing Shape’s cloud-based application security software, as well as its artificial intelligence (AI) and analytics platform, in-house.