F5 Network stock price soars to record highs after acquiring Volterra for $500 Million

Shares of F5 Networks (NASDAQ: FFIV) soared over 6% on Friday to exceed the $200.00 mark for the first time ever. The company announced the acquisition of Volterra startup for $500 million. 

Fundamental analysis: Volterra to be integrated

F5 Networks said it will pay $440 million in cash and $60 million in deferred and unvested incentive payments to acquire could-management startup Volterra. Interestingly, Volterra was founded only last year when it raised $50 million.

According to François Locoh-Donou, the president and chief executive of F5 Networks, said his company will work to integrate Volterra’s products in his company’s portfolio. 

Volterra’s founder and CEO Ankur Singla said:

Volterra represents another major acquisition for F5 Networks after buying Shape Security for $1 billion and NGINX for $670 million.

Technical analysis: Shares soar to record highs

F5 Networks stock price closed last week 8.7% higher. On Friday, in particular, shares closed 6.19% higher after surging more than 11% to trade above the $200.00 mark for the first time ever. 

The stock price rotated lower on profit-taking to close the week at $191.24. Any further decline in stock price towards the previous all-time high near the $180.00 handle will be used as a buying opportunity. 

Summary

F5 Networks announced the acquisition of Volterra startup for $500 million to send its shares soaring to record highs.