A10 Networks, a technology provider in application networking and security, will payUS $6.5 million for Appcito, Inc., a provider of a SaaS-based, multi-cloud ADC solution utilising microservice and container architectures.
On Thursday A10 reported 2nd Quarter earning of $57.13 million, a rise of 20.2% year-on-year, representing a loss per share of $0.02. The acquisition is described as “a strategic step … to help customers become more secure and agile as they bridge traditional and cloud application environments.” The acquisition is, says A10, designed to make customers more agile by bridging application needs, spanning data centres and public, private, and hybrid clouds.
Lee Chen, A10’s founder and CEO told analysts, “Given our bottom line improvement, we continue to believe we see a clear path to reaching non-GAAP profitability by the fourth quarter (2016).”
In 2015, Gartner named Appcito as one of the “Cool Vendors in Enterprise Networking.” The acquisition adds to A10 Networks’ existing momentum around providing secure application service solutions that meet several key demands. These demands include application analytics, visibility, and centralised control. Appcito fits seamlessly into A10 Networks’ A10 Harmony solution architecture. The architecture, which was introduced in early 2015, supports secure application service offerings that span traditional data centers, private clouds, public clouds, and hybrid clouds.
New A10 Harmony-based cloud offerings that integrate Appcito technology will be available beginning in 2016. Solutions will include a cloud services controller for centralised application policy management and orchestration, elastic application traffic management capabilities integrated with DevOps processes, deep per-application visibility and analytics, and support for microservice and container-based applications.
“Appcito was founded with a vision to deliver cloud-native application delivery services and help application teams become more nimble, while delivering application performance and security that their end users demand,” said Kamal Anand, CEO and co-founder of Appcito. “Becoming part of A10 Networks and their customer-focused innovation culture will bring added benefits to application teams. The acquisition makes solid sense for customers wanting to collectively manage traditional on-premise and cloud application needs.”
The price of $6.5 million was confirmed in an earnings call on July 28. Appcito series funding to date was put at $7.5 million.
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