F5 Networks sticks a fork in $670M deal to buy NGINX

F5 Networks Thursday announced it had completed its $670 million deal to buy NGINX.

NGINX created an open source web server software code that is used by more than 409 million websites and over 63% of the world’s top 10,000 websites.

RELATED: F5 Networks nabs virtual ADC vendor NGINX for $670M

When the deal was announced on March 11, F5 said NGINX's open source community was one of the most compelling reasons for buying the company. F5 said it would continue to support the open source community and code while also using it as a core part of its multicloud strategy going forward.

While F5 Networks has its roots based in the application delivery controller (ADC) market, it has been working on becoming more of a software-based company of late. F5 is integrating its security solutions and cloud-native technologies with NGINX's load balancing software and code in order to give it an entry point into the containerized application delivery controller (ADC) market. 

F5 Networks is also boosting its ability to provide SaaS-cloud services and other application delivery services via the NGINX deal.

Citrix, which is one of F5's main competitors in the ADC market, was also reportedly interested in buying NGINX.

In a blog post last month, F5 Networks CEO François Locoh-Donou said the deal "would bridge a divide between applications and infrastructure and between the developer and operations."

"This is a divide that exists between the modern, open source applications developed in and for the cloud and the traditional, mission-critical applications that are often the last to migrate out of the enterprise data center," according Locoh-Donou. "This is a divide that is only getting wider for NetOps teams balancing infrastructure costs and controls against DevOps teams developing applications for speed and scale. 

"F5 + NGINX is a powerful combination that can bridge this divide. We believe every organization can benefit from the agility and flexibility enabled by modern technologies, without compromising on the time-tested fundamentals of security, manageability, and reliability."

NGINX CEO Gus Robertson has joined F5 and continues to lead the company. Robertson has also joined F5’s senior management team, reporting to Locoh-Donou. F5 is keeping NGINX’s operations in San Francisco and other locations globally.