F5 to buy Acopia for $210 million

F5 Networks, whose products manage software over computer networks, agreed to buy Acopia Networks for $210 million in cash to add to its data- management tools.

The acquisition of closely held Acopia will contribute $25 million to $30 million to revenue in 2008 and will start adding to earnings in the first half of 2009, Andrew Reinland, Seattle-based F5's chief financial officer, said in a conference call this morning.

Lowell, Mass-based Acopia's products help companies store data in a way that gives software in a network access to files in one large pool rather than through different disks and devices. Companies are as much as tripling their use of such technology to cut the cost of protecting and organizing information, F5 said, citing a study by research group IDC.

The amount of stored information that isn't attached to a fixed location has grown "dramatically," posing a challenge to data-center managers, F5 Chief Executive Officer John McAdam said in the conference call. The largest U.S. companies will need products like Acopia's to manage data effectively, he said.

The deal should close on or shortly after Sept. 14, F5 said in a statement.

Shares of F5 closed trading today down $11.25, or 13.4 percent, at $72.43. The stock had risen 13 percent this year before today.