F5 Acquires Web Security Firm

F5 Networks on Tuesday bolstered its stake in the security market by acquiring MagniFire WebSystems and creating a new security business unit.

The Seattle-based application traffic management company agreed to acquire MagniFire, a Web application firewall vendor, in a $29 million cash transaction. The deal was signed and closed May 31, according to F5.

MagniFire's TrafficShield security appliance combines application-layer filtering with encryption technology to help protect against network attacks that can circumvent perimeter defenses.

F5 also said it launched a security-focused business unit under the leadership of Jeff Pancottine, general manager of the company.

Dan Matte, vice president of product management and marketing at F5, was promoted to assume Pancottine's former role as senior vice president of marketing."F5's new business unit will provide the strategic vision, focus and technical expertise required to be successful in this competitive market," said F5 President and CEO John McAdam in a statement.

The new business unit will include 80 people, including about 20 sales, marketing and development personnel from MagniFire, according to F5.

F5 will continue to operate MagniFire's development facility in Tel Aviv, Israel. The new security unit also will include assets that F5 acquired from SSL VPN vendor uRoam last July.

F5 and MagniFire plan to disclose further details of the acquisition during a public conference call on Wednesday. Shares of F5 traded at $29.49, down 19 cents, as of Tuesday afternoon.

Article appears courtesy of CRN.0