REFILE-UPDATE 1-Elliott Management takes stake in F5 Networks - source

  • 11/9/2020
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(Corrects to add “source” to headline) Nov 8 (Reuters) - Elliott Management Corp has taken a small stake in software firm F5 Networks Inc, a person familiar with the matter told Reuters. The Wall Street Journal reported here the news first without mentioning the exact size of Elliott"s stake but said it fell below the 5% threshold that would require regulatory disclosure. The activist investor spoke to F5 Networks’ management in recent weeks regarding ways to boost its lagging stock, the newspaper added. Elliott managers raised questions regarding the software company’s recent acquisitions of Shape Security Inc and Nginx Software Inc, suggesting it may have overpaid without a clear integration strategy, the report said. In 2019, F5 Networks bought Shape Security for a total enterprise value of about $1 billion in cash and acquired Nginx Software for about $670 million. F5 Networks did not immediately respond to Reuters’ request for comment. (Reporting by Maria Ponnezhath in Bengaluru and Lawrence Delevingne; Editing by Peter Cooney and Lincoln Feast)

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