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F5 Is Set to Thrive

Mark Cash (mark.cash@morningstar.com)

 F5 Networks FFIV announced its intent to acquire privately held Nginx, a provider of open-source software for application delivery controllers and microservices, for $670 million of cash by acquiring all issued and outstanding shares. Nginx and F5 were competitors in the ADC marketplace, with Nginx focused on software-based solutions to disrupt F5's traditional hardware dominance. Nginx is a leader in the web application server, microservices, and API management side of development operations, whereas F5 excels at routing and managing the applications for the end users.