Back to top

Analyst Blog

In a bid to strengthen its security service, F5 Networks Inc. (FFIV - Snapshot Report) is set to acquire Versafe Ltd., a provider of web anti-fraud, anti-phishing, and anti-malware solutions. Financial details of the deal were not disclosed. The acquisition is not likely to have a material impact on its operating results.

The acquisition will enable F5 to provide its customers with secure access to data and applications, which in turn will create a protected business environment. Versafe technology provides complete, real-time detection and protection for its users, thereby reducing the risk of theft of intellectual property and money sensitive data and identity.

Additionally, Versafe provides advisory security service and remediation through its Security Operations Center (SOC), which will enhance F5's security solutions portfolio.

Versafe Ltd. develops security applications for identity theft and online fraud prevention applications. Specifically, the Versafe security suite provides anti-phishing, anti-trojans, anti-pharming and brand protection solutions. The company also provides fraud prevention, operation center, forensics, governance, risk and compliance services.

F5 Networks reported total revenue of $370.3 million in the third quarter of 2013, up 5.0% from $352.6 million in the year-ago period. Improvement in revenues was mainly due to broad-based strength in end markets and geographical regions.

In Feb 2013, F5 Networks acquired LineRate Systems, a privately-held networking services provider. The acquisition strengthens F5’s exposure to the networking market. The company is a key player in the Software-defined Networking (SDN) market and the acquisition is expected to pave the way for F5’s penetration within the segment.

Better execution and focus on enterprise and service providers have placed F5 Networks well in the application delivery controller (ADC) market. F5 Networks is also keen on expanding its cloud exposure.

However, key networking players such as Cisco Systems (CSCO - Analyst Report), Juniper Networks (JNPR - Analyst Report) and Brocade (BRCD - Snapshot Report) are also increasing exposure in the SDN segment, so only time will tell if F5 is able to maintain its niche position.

Currently, F5 Networks has a Zacks Rank #3 (Hold).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
TRIQUINT SE… TQNT 20.67 +6.55%
RF MICRO DE… RFMD 12.44 +5.74%
VASCO DATA… VDSI 14.80 +4.89%
CHYRONHEGO… CHYR 2.85 +4.78%
SKYWORKS SO… SWKS 56.73 +2.14%