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Check Point to acquire Cyberint to boost SOC capabilities

Published 27/08/2024, 13:30
© Reuters.
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REDWOOD CITY, Calif. - Check Point Software Technologies Ltd. (NASDAQ: NASDAQ:CHKP), a prominent cybersecurity platform provider, has announced a definitive agreement to acquire Cyberint Technologies Ltd., a leader in External Risk Management solutions. The acquisition is poised to significantly enhance Check Point's Security Operations Center (SOC) capabilities and broaden its managed threat intelligence services.

Cyberint, established in 2010 and employing over 170 people globally, is recognized for its rapid growth in the cybersecurity market. The company was awarded 'Company of the Year' in 2023 by Frost & Sullivan in the External Risk Mitigation & Management category. Specializing in threat intelligence, digital risk protection, and attack surface management, Cyberint serves a diverse clientele, including Fortune 500 companies.

The integration of Cyberint's advanced capabilities into the Check Point Infinity Platform is expected to offer collaborative threat prevention and will be available as a managed service through Check Point Infinity Platform Services. Cyberint's technology focuses on real-time intelligence and proactive defense strategies to combat prevalent threats such as stolen employee credentials, fake websites, and social media impersonation.

Yochai Corem, CEO at Cyberint, expressed enthusiasm for the acquisition, emphasizing that the integration with Check Point will enhance their ability to protect organizations against both internal and external threats. Sharon Schusheim, Chief Services Officer at Check Point, also highlighted the alignment of Cyberint's solutions with Check Point's vision of collaborative threat prevention and the enhancement of SOC capabilities.

Cyberint's key capabilities include the detection and takedown of impersonating websites and social media accounts, stolen credentials, and leaked data associated with organizations. The company's AI-powered technology delivers actionable intelligence within 20 minutes after setup, enabling prompt responses to threats with minimal false positives. Cyberint's managed services also offer expert guidance for comprehensive risk management.

The transaction's closing is contingent on customary conditions and is expected to be finalized by the end of 2024. Check Point Software Technologies Ltd., with over 100,000 organizations worldwide under its protection, aims to leverage AI across its Infinity Platform to enhance cybersecurity efficiency and accuracy.

This strategic acquisition is based on a press release statement and reflects Check Point's commitment to advancing its cybersecurity offerings in an increasingly digital and threat-prone business environment.

In other recent news, Checkpoint Software has been making headlines with its strong financial results and significant billings growth. BMO Capital Markets, Baird, and Mizuho have all raised their price targets for Checkpoint Software, reflecting the company's robust performance. The company's second-quarter results showcased strong billings growth and a slight year-over-year increase in product growth. Nadav Zafrir, a cyber-veteran, has been appointed as the new CEO, expected to contribute significantly to the company's future.

Checkpoint Software also expanded its share repurchase program by an additional $2 billion. The company's management has forecasted revenues between $615 million and $650 million for the second half of the year. Analysts are closely watching for key metrics in the upcoming earnings report, such as billings of $596.7 million, total revenue of $623.5 million, and product revenue of $113.6 million.

Scotiabank and Deutsche Bank (ETR:DBKGn) have also revised their targets for Checkpoint Software to $200 and $185 respectively. Checkpoint Software has also highlighted its focus on AI technology and its Infinity platform, which reported double-digit growth in product and subscription revenues. These are the recent developments for Checkpoint Software.

InvestingPro Insights

As Check Point Software Technologies Ltd. (NASDAQ: CHKP) sets its sights on enhancing its Security Operations Center (SOC) capabilities through the acquisition of Cyberint Technologies Ltd., investors and industry observers are closely monitoring Check Point's financial health and market position. According to InvestingPro data, Check Point boasts a robust market capitalization of $21.4 billion, signaling strong investor confidence in its market presence and future growth potential.

With a high gross profit margin of 88.85% over the last twelve months as of Q2 2024, Check Point demonstrates exceptional efficiency in its operations, reinforcing its ability to integrate and capitalize on Cyberint's advanced threat intelligence technologies. Additionally, Check Point's impressive return on assets of 15.09% during the same period indicates its ability to generate profits from its asset base, a positive sign for the company's operational effectiveness post-acquisition.

InvestingPro Tips highlight Check Point's aggressive share buyback strategy and its significant cash reserves compared to debt, which may provide the financial flexibility required for strategic initiatives like the Cyberint acquisition. Furthermore, Check Point's stock has been trading near its 52-week high, with a price percentage of 98.7%, reflecting strong market sentiment. For investors seeking more in-depth analysis, there are 12 additional InvestingPro Tips available, offering further insights into Check Point's financial metrics and market performance.

As Check Point continues to navigate the competitive cybersecurity landscape, the financial indicators and InvestingPro Tips suggest a company that is strategically positioned to leverage its strengths and enhance its service offerings through targeted acquisitions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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