Fortinet (NASDAQ:FTNT), a global leader in cybersecurity, on Tuesday, announced the acquisition of Next DLP, a company specializing in insider risk and data protection.
This strategic move is set to enhance Fortinet's presence in the standalone enterprise data loss prevention (DLP) market and fortify its position in integrated DLP markets, particularly within endpoint and Secure Access Service Edge (SASE) solutions.
Ken Xie, the Founder, Chairman of the Board, and CEO at Fortinet, emphasized the acquisition's alignment with the company's business strategy, stating that it will "significantly strengthen our data loss prevention capabilities, helping customers manage insider risk across SASE and endpoint deployments."
Connie Stack, CEO at Next DLP, also commented on the synergy, highlighting the extended reach their data security solutions will now have through integration with Fortinet.
Next DLP offers a cloud-native SaaS data protection platform that operates from endpoint to cloud.
The acquisition, which was signed and closed on August 5, 2024, will see Next DLP's technology integrated into Fortinet's security service edge (SSE (LON:SSE)) offering, enhancing the company's Unified SASE solution.
This integration aims to add advanced data loss prevention capabilities and additional insider risk and data protection features across the Fortinet Security Fabric.
InvestingPro Insights
Fortinet's recent acquisition of Next DLP underscores the company's commitment to expanding its cybersecurity offerings. This strategic move coincides with a period of robust financial performance for Fortinet, as reflected in key metrics from InvestingPro. With a market capitalization of $42.31 billion and a high gross profit margin of 77.13% in the last twelve months as of Q1 2024, Fortinet demonstrates a strong ability to generate earnings relative to its revenues. Moreover, the company's impressive revenue growth of 14.2% during the same period indicates a solid trajectory in expanding its market reach.
InvestingPro Tips highlight that Fortinet has been aggressively buying back shares and holds more cash than debt on its balance sheet, which may appeal to investors seeking companies with strong balance sheets and shareholder-friendly policies. Additionally, the company's cash flows can sufficiently cover interest payments, suggesting financial stability.
For investors considering Fortinet's stock, it is noteworthy that the company is trading at a high earnings multiple, with a P/E ratio of 35.89, and analysts predict the company will be profitable this year. While the stock trades at a high valuation multiple, its low price volatility could be a sign of market confidence in the company's steady growth prospects.
Those interested in deeper analysis will find additional InvestingPro Tips on Fortinet at https://www.investing.com/pro/FTNT, providing further insights into the company's financial health and market performance.
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