A10 Discloses $6.5M Appcito Purchase Price

Mitch Wagner
7/29/2016

A10 Networks is paying just $6.5 million for Appcito, the cloud business that will complement A10's existing application delivery controller appliance line. (See A10 Buys Appcito for Hybrid Cloud Muscle.)

A10 Networks Inc. revealed the purchase price on its earnings call Thursday, saying the expenditure won't change A10's previously stated goal to achieve profitability by the end of the year.

A10 reported $57.1 million revenue for the second quarter ending June 30, up 20% year-over-year, with a net loss (excluding one-time costs) of $1.1 million, or $0.02 per share, compared with a loss of $5.3 million, or $0.09 per share, in the year-ago quarter. (See A10 Reports $57.1M 2Q Revenue.)

A10 announced the Appcito acquisition this week. Its 31 employees will join A10's 860 people, and former Appcito CEO Kamal Anand joins A10 as VP and GM of the cloud business unit, effective when A10 closed the acquisition June 23.

A10's stock price was flat after hours late Thursday at $7.56.

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thebulk
thebulk
8/2/2016 | 1:07:52 PM
Re: Seems like a good deal
Not a bad play if they can make good use of the new resource. I guess a lot will come down to the transiton. 
Mitch Wagner
Mitch Wagner
8/1/2016 | 2:24:17 PM
Re: Seems like a good deal
Appcito will be A10's cloud business unit. A10 will use Appcito's people and assets to extend its appliance ADC business into the cloud. 
thebulk
thebulk
7/31/2016 | 5:07:15 AM
Seems like a good deal
I would say the price seems like a good deal. But I wonder how they will leverage the tech going forward. 
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