U.S. Markets close in 1 hr 20 mins
  • S&P 500

    +93.54 (+2.04%)
  • Dow 30

    +501.44 (+1.42%)
  • Nasdaq

    +452.79 (+2.97%)
  • Russell 2000

    +65.49 (+2.97%)
  • Crude Oil

    +2.44 (+3.51%)
  • Gold

    +6.90 (+0.39%)
  • Silver

    +0.30 (+1.33%)

    -0.0025 (-0.2252%)
  • 10-Yr Bond

    +0.0360 (+2.51%)
  • Vix

    -5.30 (-19.50%)

    -0.0021 (-0.1589%)

    +0.1200 (+0.1057%)

    +1,848.18 (+3.75%)
  • CMC Crypto 200

    -5.09 (-0.38%)
  • FTSE 100

    +107.62 (+1.49%)
  • Nikkei 225

    +528.23 (+1.89%)

Check Point (CHKP) Augments Cloud Email Security With Avanan Buyout

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Check Point Software Technologies CHKP recently announced that it has entered into an agreement to acquire Israel-based enterprise cloud email security solutions provider, Avanan, for an undisclosed amount. The buyout is likely to strengthen the company’s cloud offering portfolio and enhance its end-to-end enterprise security solution capabilities.

Founded in 2015, Avanan is a start-up that provides technology to secure cloud email infrastructure. The Israel-based tech start-up has built a cloud-native platform that stops e-mail threats before arriving to the inbox, as well as provides protection to cloud collaboration solutions, such as Alphabet’s GOOGL G-Suite, Microsoft’s MSFT Office 365, and Slack.

The platform is easy to deploy and can be configured in few clicks. According to Check Point, Avanan has currently more than 5,000 customers and protects more than 2.5 million email inboxes.

Check Point Software Technologies Ltd. Price and Consensus

Check Point Software Technologies Ltd. Price and Consensus
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 accelerated adoption of cloud office systems and use of other collaboration suites amid the COVID-19 pandemic-induced remote working wave has expanded enterprises’ exposure to cyber-attacks even more. Legacy email solutions built for on-premises email protections have failed to provide complete security over the cloud and collaboration suits.

To address this requirement, Check Point aims to integrate Avanan’s technology into its Infinity architecture, which provides effective protection from Gen V and succeeding generations of cyber-attacks. Infinity consolidates security in a platform, which encompasses the network, mobile and cloud.

Anaplan and Check Point Infinity’s consolidated architecture will offer the world’s most secure email security solution, Check Point stated in its press release. The patented technology will be the only solution in the market that will protect remote workforce from malicious files, collaboration suites, URLs and Phishing across email, web, network, and endpoint.

Check Point’s chief product officer, Dr. DoritDor said, “By integrating Avanan into Check Point Infinity, organizations will be able to modernize legacy solutions with email security as-a-service and protect cloud email and collaboration suites from the most sophisticated attacks.”

Check Point Enhances Portfolio With Acquisitions

Acquisitions have helped Check Point broaden its portfolio, capabilities and enter into newer market, which has eventually driven its revenues.

In the last two decades, the company acquired 13 businesses to expedite growth. The notables among them were Lacoon Mobile Security, Hyperwise, Liquid Machines, Dynasec Ltd., and the security appliance business of Nokia Corporation.

In September last year, Check Point acquired cybersecurity start-up, Odo Security, which is specialized in Zero Trust Network Access software. Odo solutions help enterprise’s workforce have a secure remote access to any application.

In December 2019, it bought Internet of Things (IoT) start-up, Cymplify, in a bid to reduce enterprise customers’ IoT cyber risk exposure. The buyout has expanded the company’s capabilities in providing protection to IoT devices, including IP cameras, smart TVs, elevator controllers and medical devices against sophisticated zero-day attacks.

Same year, in January, it purchased ForceNock Security Ltd for an undisclosed amount. ForceNock uses machine learning-based, easily deployable security engine for Web Application and API (Application Program Interface) Protection, to eliminate the need of security teams for managing various complicated configurations while maximizing security.

With the Avanan buyout, the company will not only enhance its portfolio, but also boost its Infinity sales strategy, which is currently one of its key goals.

Though the terms of the deal were not disclosed, we believe the company is comfortably positioned to make acquisitions. This is evident from the last reported quarter, which the company exited with cash and cash equivalents, marketable securities and short-term deposits of $4 billion.

Zacks Rank & Stock to Consider

Check Point currently carries a Zacks Rank #3 (Hold).

A better-ranked stock in the broader technology sector is Texas Instruments TXN which carries a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term earnings growth rate for Texas Instruments is currently pegged at 9.3%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Texas Instruments Incorporated (TXN) : Free Stock Analysis Report

Microsoft Corporation (MSFT) : Free Stock Analysis Report

Check Point Software Technologies Ltd. (CHKP) : Free Stock Analysis Report

Alphabet Inc. (GOOGL) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research