Cybersecurity company Check Point Software Technologies Ltd. (Nasdaq: CHKP) has made its first acquisition since 2015, and, as in previous acquisitions, the company in question is Israeli. Check Point announced today that it had bought Dome9 for $175 million in a deal intended to strengthen Check Point's value proposition in cloud infrastructure security.
"Dome9 and Check Point’s CloudGuard together provide the best cloud security solution in the industry. Dome9’s platform will add rich cloud management and active policy enforcement capabilities to Check Point’s Infinity Architecture, particularly complementing the CloudGuard security product family and make our broad solution even more differentiated in the rapidly moving Cyber Security environment," said Check Point CEO Gil Shwed.
Dome9's founders Zohar Alon and Roy Feintuch hold 25% of its shares, and will together receive $44 million. Dome9 has raised $30 million since it was founded. It held a funding round in April 2017 led by Softbank in which it raised $16.5 million. Check Point had cash and cash equivalents of over $4 billion at the end of the third quarter, so this deal is not material for the company. In recent years, Check Point has mainly used its cash to buy back its shares.
Check Point also released its third quarter results today, beating the analysts' consensus estimate on both revenue and profit. Quarterly revenue was $471 million, representing 3.6% growth in comparison with the corresponding quarter of 2017. GAAP-based net profit totaled $198 million, compared with $192 million in the corresponding quarter, while non-GAAP profit grew 8% to $219 million, or $1.38 per share, $0.02 ahead of the analysts' consensus.
Published by Globes, Israel business news - en.globes.co.il - on October 24, 2018
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