F5 Stock Surges on Report It Hired Goldman to Help Field Offersby
F5 Networks Inc. surged the most in almost five years after Reuters reported that the company had hired Goldman Sachs Group Inc. to help evaluate acquisition offers.
The company is working with Goldman to decide how to proceed and there’s no certainty a transaction will happen, Reuters said, citing anonymous sources.
F5 stock gained 13 percent to $123.94 at the close of trading Tuesday in New York, its biggest one-day jump since October 2011. The increase pushed the company’s market value to $8.3 billion.
The Seattle-based company is the dominant maker of machines and software that boost the performance of software and services over networks by assigning the appropriate level of computing resources to them. F5, which has averaged 11 percent annual revenue growth over the last three years, is on course to report slower sales and a profit decline this year, according to analysts estimates compiled by Bloomberg.
Company spokesman Nathan Misner didn’t immediately return messages left seeking comment.