Cloud company Fastly to purchase app security provider Signal Sciences for $775 million

Fastly says it plans to fold Signal Sciences' technology into a new security product.
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The cloud services company Fastly said Thursday it intends to acquire Signal Sciences for $775 million.

The deal for Los Angeles-based Signal Sciences, which provides security monitoring and digital defenses for web applications, is for $200 million in cash and roughly $575 million in Class A stock, the companies said in an announcement. The deal is subject to “customary adjustments for transactions of this nature,” they said. Fastly also will set up a $50 million retention pool for restricted stock meant to current Signal Sciences employees.

The transaction brings Signal Sciences into Fastly’s service, a content distribution platform that protects against distributed denial-of-service (DDoS) attacks, automated bot traffic and provides an application firewall. Now, the plan is to include Signal Science’s technology, which encompasses API protection, into a new security product.

Word of the deal comes after Palo Alto Networks announced it would acquire Crypsis Group, an incident response firm, for $265 million in cash. The deal is the latest in a long series for Palo Alto Networks, which has spent more than $1 billion on acquisitions in recent years.


The deal also is evidence that, despite international economic fallout due to the COVID-19 pandemic, cybersecurity mergers and acquisitions have not stopped. The number of deals involving early-stage startups did fall, however, by 37.7% during the second-quarter of this year, according to a recent financial paper from DataTribe, a security-minded incubator, after a years-long period of growing financial investment.

Jeff Stone

Written by Jeff Stone

Jeff Stone is the editor-in-chief of CyberScoop, with a special interest in cybercrime, disinformation and the U.S. justice system. He previously worked as an editor at the Wall Street Journal, and covered technology policy for sites including the Christian Science Monitor and the International Business Times.

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