Check Point Software Technologies Ltd. (NASDAQ:CHKP) recently announced that it has acquired Israel-based security technology provider, ForceNock Security Ltd for an undisclosed amount.
The company believes that the growing usage of Cloud, Network, Mobile, Endpoint and IoT requires comprehensive yet powerful security technologies. To address this requirement, Check Point aims to integrate ForceNock’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.
ForceNock, about a couple years old, uses machine learning-based, easily deployable security engine for Web Application and API (Application Program Interface) Protection, to eliminate the need of security teams to manage various complicated configurations while maximizing security. This makes it suitable for enhancing Check Point’s Infinity architecture.
Dorit Dor, Vice President of Products, Check Point said “Incorporating ForceNock’s technology into our Infinity Architecture will enable us to continue to provide the highest level of security for our customers worldwide and strengthens our machine learning protection capabilities.”
Check Point Rides on Acquisitions
Acquisitions have helped Check Point in broadening portfolio, capabilities and enter into newer market, which has eventually driven its revenues.
In the last two decades, the company acquired 11 businesses to expedite growth. The notables among them were Lacoon Mobile Security, Hyperwise, Liquid Machines, Dynasec Ltd., and the security appliance business of Nokia (HE:NOKIA) Corporation.
In the last reported quarter, Check Point acquired Dome9, with which it expects to boost Infinity architecture and CloudGuard security offering.
With the ForceNock buyout, the company will not only enhance its portfolio, but will also boost its Infinity sales strategy, which is currently one of its prime focuses.
Though the terms of the deal were not disclosed, we believe that Check Point 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 $4.07 billion compared with $4.04 billion in the prior quarter.
Zacks Rank & Stocks to Consider
Check Point currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Computer and Technology sector are Synopsys, Inc. (NASDAQ:SNPS) , Infineon Technologies AG (OTC:IFNNY) and Marvell Technology Group Ltd. (NASDAQ:MRVL) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Synopsys, Infineon and Marvell is projected to be 10%, 8.62% and 9.38%, respectively.
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