Check Point Software Technologies Ltd. CHKP recently announced the acquisition of IoT startup Cymplify in a bid to reduce enterprise customers’ IoT cyber risk exposure.
The buyout will help the company to protect IoT devices, including IP cameras, smart TVs, elevator controllers and medical devices against sophisticated zero-day attacks.
The highlight of the acquisition is Cymplify’s IoT cyber security technology can keep hackers from taking advantage of remote code execution flaws or vulnerabilities such as VENOM or GHOST. This technology will be incorporated into Check Point’s Infinity architecture.
Moreover, the acquisition brings better access control, advanced threat protection and runtime workload capabilities to Check Point’s portfolio.
Check Point Software Technologies Ltd. Price and Consensus
Check Point Software Technologies Ltd. price-consensus-chart | Check Point Software Technologies Ltd. Quote
Rationale Behind the Buyout
The growing number of connected devices among enterprises calls for efficient management and stronger security in their IoT landscape. Currently, IoT focuses mainly on device profiling and inventory, neglecting the need to detect and prevent advanced attacks.
This has created a security gap and the perfect opportunity for cybercriminals to launch fifth and sixth generation of cyberattacks to hack into devices, distort and influence their operation or obtain critical infrastructure to generate large-scale damage.
In order to bridge this security gap, organizations are forced to use different IoT security products from multiple vendors, making it difficult to manage and look into the security interface, along with incurring higher costs. The Cymplify acquisition will help Check Point to address these concerns.
Moreover, as 5G and IoT networks become more prevalent, IoT devices – especially IP surveillance cameras, medical and industrial sensors – are expected to come online widely. Thus, the acquisition enables Check Point to cash in on this opportunity and expand into the IoT security space.
Rising Competition in IoT Security
Per MarketsandMarkets, the global IoT security market is expected to grow to $35.2 billion, at a CAGR of 33.7% during 2018-2023. The firm also notes that the major factors driving growth of the market are the rising number of ransomware attacks on IoT devices across the globe, increasing IoT security regulations and security concerns over critical infrastructures.
In this area, Check Point competes with major IoT security vendors like Cisco CSCO, Palo Alto PANW, Fortinet FTNT and Mocana, among others. Given the bright prospects of the IoT security market, security companies are constantly upping their game.
In September this year, Palo Alto acquired IoT security start-up Zingbox to expedite and improve delivery of IoT security to organizations. The combination will allow firms to enhance visibility and security of their IoT landscape.
Also, early this year, Mocana’s TrustCenter was integrated with the Intel Secure Device Onboard service in an attempt to simplify IoT device security.
Moreover, in September last year, Fortinet launched a new network access control product line, FortiNAC, which delivers network segmentation and automated responses for IoT security.
Nonetheless, Check Point’s efforts in IoT security are expected to help it maintain its position in the competitive environment, and benefit significantly from its prospects.
Check Point currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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