F5 Networks rally 5% after company agrees to buy Volterra for $500 million

F5 Networks Inc.
FFIV,
+0.85%
said late Thursday it has agreed to buy privately held software company Volterra Inc. for approximately $440 million in cash and about $60 million in compensation to founders and employees. “With the addition of Volterra’s technology platform, F5 is creating an edge platform built for enterprises and service providers that will be security-first and app-driven with unlimited scale,” F5 Networks said in a statement. The company also said it expects fiscal 2021 first-quarter GAAP revenue in a range between $623 million and $626 million due in part to software revenue growth. Shares of F5 Networks rallied 5% in the extended session Thursday after ending the regular session up 0.9%.