F5 Networks (FFIV) NGINX Acquisition Is A Bold Bet On DevOps - William Blair

March 12, 2019 7:37 AM EDT
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Price: $225.32 +0.64%

Rating Summary:
    22 Buy, 23 Hold, 3 Sell

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Today's Overall Ratings:
    Up: 7 | Down: 8 | New: 70
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William Blair analyst, Jason Ader, reiterated a Market Perform rating on F5 Networks (NASDAQ: FFIV) after the company announced the acquisition of NGINX, a privately held provider of open-source application delivery software, for an enterprise value of $670 million.

The analyst stated "This is by far F5’s largest acquisition to date, and the hefty multiple paid (26 times calendar 2018 revenue of $26 million) and projected earnings dilution speak to the apparent urgency at F5 to drive revenue growth and better address next-generation applications and the influential DevOps community. F5 management justified the deal as “bridging the divide” between NetOps (F5’s strength) and DevOps (NGINX’s strength)".

For an analyst ratings summary and ratings history on F5 Networks click here. For more ratings news on F5 Networks click here.

Shares of F5 Networks closed at $158.00 yesterday.

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