Fortinet acquires data protection firm Next DLP By Investing.com

SUNNYVALE, Calif. – Fortinet (NASDAQ: NASDAQ:), a global leader in broad, integrated, and automated cybersecurity solutions, announced the acquisition of Next DLP, a company specializing in insider risk and data loss prevention. The transaction was completed on Monday, reinforcing Fortinet’s enterprise data loss prevention (DLP) offerings and integrated DLP within endpoint and Secure Access Service Edge (SASE) environments.

The acquisition is aimed at enhancing Fortinet’s capabilities in managing insider risk and extending the reach of its data protection solutions. Ken Xie, Founder, Chairman of the Board, and CEO at Fortinet, emphasized the strategic importance of this move in line with the company’s goal to offer top security solutions.

Connie Stack, CEO at Next DLP, expressed confidence that the integration with Fortinet would benefit organizations worldwide by enhancing their data security against insider threats.

Fortinet plans to incorporate Next DLP’s advanced data loss prevention technology into its security service edge (SSE (LON:)) offering and further integrate insider risk and data protection features across the Fortinet Security Fabric.

The financial details of the deal, which was signed and closed on August 5, 2024, were not disclosed. Next DLP has been acknowledged in the 2023 Gartner (NYSE:) Market Guide for Data Loss Prevention and the Gartner Market Guide for Insider Risk Management Solutions.

This strategic acquisition is expected to bolster Fortinet’s existing security services, providing a more robust solution to enterprises concerned with data security and insider risks.

Cybersecurity company Fortinet has been the subject of several significant developments. The company has faced a downgrade from Guggenheim due to failing to meet or lower its financial targets over the past three consecutive quarters.

In a strategic move, Fortinet has announced its acquisition of Lacework, an AI-powered cloud security firm. This acquisition is expected to enhance Fortinet’s security offerings, particularly in the Secure Access Service Edge (SASE) market.

Despite facing challenges in billings performance and market competition, Fortinet’s SASE offering has shown promising growth, with a notable increase in its mix to 24% and a year-over-year pipeline growth of 45%.

InvestingPro Insights

In light of Fortinet’s recent acquisition of Next DLP, a closer look at the company’s financial health and market perception through InvestingPro insights reveals several noteworthy points. Fortinet holds a strong cash position compared to its debt, which is a positive sign for stakeholders considering the financial implications of such acquisitions (InvestingPro Tips). Additionally, the company’s gross profit margins are impressive, standing at 77.13% for the last twelve months as of Q1 2024, reflecting efficient operations and a strong pricing strategy (InvestingPro Data).

Moreover, Fortinet has been executing a share buyback program, signaling management’s confidence in the company’s value (InvestingPro Tips). This is coupled with a robust market capitalization of $42.31 billion, showcasing the company’s significant presence in the cybersecurity market (InvestingPro Data).

While the company trades at high earnings multiples, with a P/E ratio of 35.89, this reflects investor expectations for future earnings growth, driven by strategic initiatives such as the Next DLP acquisition (InvestingPro Data). Fortinet’s commitment to expanding its DLP offerings and integrating them into its broader security solutions could further solidify its market position.

For readers interested in a deeper analysis, InvestingPro offers additional tips on Fortinet, providing a comprehensive view of the company’s financial metrics and market performance (InvestingPro Tips). There are 14 more tips available, which can be found at InvestingPro.

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