Global cyber security solutions provider Check Point Software Technologies Ltd. (CHKP) announced the acquisition of Avanan, a provider of the highest level of security for emails and Software-as-a-Service (SaaS) collaboration suites.
With the ongoing rapid digital transformation due to the COVID-19 pandemic and work from home culture, the threat to users’ cyber security has increased with the adoption of cloud office systems and the use of collaboration suites beyond email.
The traditional solutions built for on-premises emails failed to adapt to the cloud and make it increasingly important for a new approach to email security to deal with the expanded cyber threat.
Avanan, a fast-growing email security company that protects more than 5000 customers and over 2.5 million inboxes, has developed a patented application programming interface (API) solution to stop email threats before arriving to the inbox for both internal and external emails using artificial intelligence (AI) based engines. The solution installs quickly like an App and is configured in a few clicks.
The combination of Avanan technology with Check Point Infinity architecture is said to deliver the highest level of security to remote workforces worldwide. Furthermore, the unified solution will enable companies to modernize legacy solutions (SEG), stop 30% more infected emails than any conventional email security solution, protect email data loss (internal and external), and protect SaaS collaboration suites such as OneDrive, Google Drive, Teams, Share Point, Slack, Box, and more from malicious URLs, infected files, and data loss prevention (DLP).
Commenting on the acquisition, Dr. Dorit Dor, Check Point’s Chief Product Officer said, “More and more businesses are moving to cloud-email platforms and with email becoming a major channel to launch devastating cyber-attacks, this acquisition represents a huge potential as organizations are looking for a new approach to email and collaboration suite security.”
Dr. Dor added, “By integrating Avanan into Check Point Infinity, organizations will be able to modernize legacy solutions with email security-as-a-service and protect cloud email and collaboration suites from the most sophisticated attacks.” (See Check Point stock charts on TipRanks)
Yesterday, Robert W. Baird analyst Jonathan Ruykhaver maintained a Hold rating on Check Point stock with a price target of $128, implying 1.1% upside potential to current levels.
Ruykhaver believes that Check Point’s valuation is fair at current levels given the execution challenges faced recently. The analyst lists numerous questions which aim to highlight the potential growth opportunities and/or risks for the company that may influence its direction in the future.
Overall, CHKP has a Hold consensus rating based on 3 Buys, 5 Holds, and 2 Sells. The average Check Point price target of $134.33 implies 6.1% upside potential to current levels. Shares have gained 12% over the past six months.
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