F5 Networks Inc., a provider of multicloud application services, agreed to acquire all issued and outstanding shares of privately held Nginx Software Inc. for a total enterprise value of about $670 million.

Upon closing of the deal, F5 will maintain the NGINX brand, and current NGINX CEO Gus Robertson, along with founders, Igor Sysoev and Maxim Konovalov, will continue to lead NGINX, the company said March 11. F5 will maintain Nginx's operations in San Francisco and other locations globally.

The acquisition, which is expected to close in the second calendar quarter of 2019, is expected to increase F5's software revenue growth and increase the company's software revenue mix in fiscal year 2019.

F5 intends to fund the transaction through cash on its balance sheet. F5 is also suspending its common stock share repurchase program. The acquisition has been approved by the boards of both companies and has also been approved by Nginx shareholders.

Foros acted as financial adviser and Wilson Sonsini Goodrich & Rosati provided legal counsel to F5 on this transaction. Qatalyst Partners served as financial adviser to Nginx.

Nginx offers a suite of technologies for developing and delivering modern applications.