Threat Stack, a Boston-based cybersecurity company, was acquired Monday by F5, one of the country’s largest providers of cloud-computing security services, for $68 million, F5 officials said.
The deal, expected to be finalized by year’s end, comes as Seattle-based F5 looks to better defend against cyberattacks that target online applications, which can cost businesses more than $100 billion a year, company officials said. F5, a networking-tech company, was founded in 1996 and is publicly traded.
Haiyan Song, the executive vice president of security at F5, said the company’s acquisition of Threat Stack will allow its customers to receive more actionable security intelligence to protect their cloud-based assets. “Applications are the backbone of today’s modern businesses,” she said in a statement. “Protecting them is mission critical for our customers.”
Threat Stack was founded in 2012 by Dustin Webber, Jason Meller, and Jen Andre. All have since left the company. In 2015, Brian Ahern became its chief executive.
The company, which employs roughly 100 people, provides security for cloud-based applications, giving its clients real-time threat detection capabilities. Its client roster includes companies like Glassdoor, Drizly, and Eventbrite, according to the company’s website.
Since its founding, Threat Stack has raised roughly $72 million in private financing, PitchBook data shows. Notable investors include F-Prime Capital Partners and Eight Roads Ventures, investing groups associated with Fidelity Investments, as well as Accomplice and .406 Ventures.
Once the deal closes, “a majority” of Threat Stack’s employees are expected to join F5, a spokesman for the company said. As of Monday afternoon, F5′s stock was down about 2 percent.