Investors Cheer Proofpoint’s Acquisition, Stock Soars 10%
Proofpoint (NASDAQ: PFPT), a security-as-a-service provider that serves large and mid-sized organizations, saw its stock spike higher by more than 10 percent on Friday to close the day at $77.39 which is within reach of its 52-week high of $80.68.
The cybersecurity security provider’s stock is now higher by more than 19 percent since the start of 2016 and up considerably from its 52-week low of $35.56. Shares are also higher by around 30 percent over the past year and a whopping 450 percent since shares began trading for the first time in April, 2012.
The stock gained on Friday as investors cheered a notable acquisition which was finalized.
Proofpoint said that it it has entered into an agreement to acquire Israel-based FireLayers, a cloud-security provider. The acquisition will put the company in a much better position to extend its Targeted Attack Protection (TAP) to SaaS applications and enable its customers to better protect themselves using SaaS applications from advanced malware.
The company further emphasized that SaaS applications are an important threat target for malware and ow that Proofpoint’s TAP with FireLayers business will better enable enterprises to detect and block malicious files and links that are shares through SaaS applications.
The newly acquired technology will be available to Proofpoint’s clients in the first half of 2017.
The price tag on the acquisition is approximately $55 million, of which $46 million will be in cash and the remaining $9 million will come from Proofpoint’s stock.
“FireLayers gives us a platform to scale and protect the thousands of SaaS applications that enterprises use, as well as a seasoned product and engineering team to execute,” said Gary Steele, Proofpoint CEO. “Also, as part of today’s news, we are pleased to expand our global cybersecurity presence in EMEA with a new office location in Israel.”
“We built FireLayers with one goal: to help enterprises secure their cloud applications—and we are thrilled to accelerate our mission and bring Proofpoint’s exceptional capabilities to SaaS applications,” said Yair Grindlinger, CEO and co-founder of FireLayers. “Our decision to joinProofpoint is based on its high caliber cybersecurity innovation and effectiveness at protecting customers worldwide from advanced threats. And the new Proofpoint Israel office extends that exceptional leadership presence into Israel for long-term success.”