& cplSiteName &

Allot in Takeover Talks With F5

Ray Le Maistre

Deep packet inspection (DPI) specialist Allot Ltd. (Nasdaq: ALLT) is reported to have been in takeover talks with applications delivery platform vendor F5 Networks Inc. (Nasdaq: FFIV), notes Azi Ronen on his Broadband Traffic Management blog.

Ronen, citing Israeli news site Calcalist (in Hebrew), notes that a deal with a price tag of US$450-500 million had been discussed and that Allot's share price leaped by nearly 14 percent last week to end July 1 at $17.97 as talk of the discussions leaked out.

Allot, one of the most experienced and respected DPI players in the sector, reported revenues of $57 million (up 36 percent year-on-year) and a net loss of $5.8 million for 2010. During the first three months of 2011 the company reported revenues of $17.2 million and a net profit of $1.6 million. (See Allot Reports Q4 and Allot Reports Q1.)

It's hard to imagine the company won't continue to grow. Allot is one of the leaders in a market that's set to ramp in the coming years as mobile operators deploy technologies, especially DPI and policy control platforms, that can help them manage their data traffic and develop new marketing strategies. (See DPI Market to Hit $1.5B by 2014.)

F5, meanwhile, is certainly upping its game in the telecom sector. In November 2010 it announced its Service Delivery Networking (SDN) proposition for mobile operators, based on its own applications management and network optimization capabilities and those of partners such as Openwave. Adding Allot to its portfolio would make sense. (See F5 Starts a Delivery Business, F5 Targets Telco Services and Openwave, F5 Team on Policy.)

— Ray Le Maistre, International Managing Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
User Rank: Light Beer
12/5/2012 | 5:00:24 PM
re: Allot in Takeover Talks With F5

Even if F5 doesn't pull off this deal, it's likely that another company with similar aspirations will step up to the plate, and this could put Sandvine in the M&A picture too.

This looks very closely linked with the current M&A trend in the policy control sector, where Amdocs recently agreed to buy Bridgewater. 


Amdocs to Buy Bridgewater for $215M


Featured Video
Flash Poll
Upcoming Live Events
September 17-19, 2019, Dallas, Texas
October 1, 2019, New Orleans, Louisiana
October 2-22, 2019, Los Angeles, CA
October 10, 2019, New York, New York
November 5, 2019, London, England
November 7, 2019, London, UK
December 3-5, 2019, Vienna, Austria
December 3, 2019, New York, New York
All Upcoming Live Events
Partner Perspectives - content from our sponsors
Transform Beyond Borders to Lead the Innovation
By Ben Zhou, CEO, Whale Cloud
Reject Limits. Build the Future.
By David Wang, Huawei
China Telecom & Huawei Jointly Complete the World's First End-to-End 5G SA Voice & Video Call
By Jay Liu, Senior Marketing Manager, Cloud Core Product Line, Huawei Technologies
All Partner Perspectives