F5 Networks (FFIV) shares skyrocketed 12.6% on Monday and rose as much as 13.5% the day before. Reports that the company recruited an investment bank to help find a buyer for the company is a main factor behind the company’s shares rising.
The company is rumored to be working with Goldman Sachs (GS) to help find a buyout offer. Goldman Sachs will work on the logistics of the buyout and will help decide which bid is the best choice for the company to take.
F5 Networks has been the subject of takeover rumors in the past that have not materialized. The company’s shares are up over 40% since February.
Last quarter results from the company show revenue of $483.68 million with net earnings of $75.42 million. Operating cash flow on the quarter fell -6.45%. Year-over-year revenue growth was up 2.44% on the quarter, but earnings fell by just over $10 million.
The company has a market cap of $8.3 billion. Investors are speculating who the company will be sold to in the bidding process, but everything is speculation at this point. The company’s main competitors, Cisco (CSCO) and Juniper Networks (JNPR), are expected to be two companies that will have interest in acquiring F5 Networks.