SEATTLE, FEBRUARY 20, 2012 -- F5 Networks, Inc. (NASDAQ: FFIV), the global leader in Application Delivery Networking, today announced that it has agreed to acquire Traffix Systems, the leading provider of 4G Diameter signaling products for telecommunications service providers. The Diameter protocol has gained industry-wide acceptance by the 3GPP and GSMA as the standard for network signaling in all 4G/LTE networks.

“Leading industry experts and service providers recognize the need for converged and unified IP solutions across carriers’ control, data, and application planes, which scale, secure, and optimize 3G, 4G/LTE, and IMS traffic,” said John McAdam, President and CEO of F5 Networks. “The result is a dramatic reduction of complexity and costs, making service provider networks more agile. With this move, F5 continues to execute on the company’s vision of delivering an adaptable architecture to enable its customers to create a smart, converged carrier IP infrastructure.”

Mobile data traffic is increasing at an enormous rate, driving many mobile operators to switch from a 3G network to all-internet protocol (IP) network, such as LTE, to manage the high volume of traffic and provide a high quality customer experience. The Diameter protocol plays a vital role in the management of 4G LTE and IMS networks and 3G charging and policy deployments. Diameter control via routing, load balancing and gateway solutions are critical to effectively building and monetizing networks by enabling them to offer advanced 4G services. Furthermore, service providers need deployment strategies based on robust, telco-grade Diameter routing for the deluge of signaling messages in their network.

“Diameter traffic is mission critical for any carrier moving to 4G/LTE and IMS architectures. It enables billing, subscriber management, and interoperability between core IP systems and between carriers themselves,” said John Byrne, Research Director Wireless and Mobile Infrastructure service at IDC. “With the load and complexity of mobile data network traffic growing dramatically, mobile operators require expertise in the data and application plane, in the form of converged IP services, and in the control plane with advanced Diameter routing, load balancing and gateway capabilities.”

“Bringing together F5’s superior expertise in IP for applications and data with Traffix’s industry leadership in Diameter and signaling for the control plane, F5 has the unique depth and breadth to make the transition from 3G to 4G and IMS much simpler, cost effective, and non-disruptive for carriers,” said Ben Volkow, CEO of Traffix Systems.

Traffix Systems’ team is one of the most advanced with their depth of talent in understanding how to manage, scale, secure, integrate and apply Diameter services within legacy and next generation networks. Traffix’s trajectory began back in 2006 with the development of Diameter protocol products. Traffix’s solutions have been adopted by some of the industry’s largest network vendors. Building on that success and filing several patents, Traffix’s next significant milestone occurred in 2009, with the introduction of the industry’s first Diameter Routing Agent (DRA), followed by the Signaling Delivery Controller (SDC), a single solution for Diameter routing, load balancing and gateway connectivity in 2011. Traffix’s SDC is 3GPP and 3GPP2 compliant, uniquely supporting over 50 related RFCs and standards. No other vendor in the market has as wide and rich functionality to simplify and enable the next generation Diameter signaling infrastructure.

The terms of the acquisition were not disclosed. The acquisition is subject to the satisfaction of certain closing conditions and is not expected to have a material impact on the company’s operating results.