Cybersecurity solutions provider Palo Alto Networks (NASDAQ:PANW) is in advanced discussions to acquire Israeli startups Talon Cyber Security and Dig Security for about $1 billion, according to TechCrunch.
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Cybersecurity incidents continue to rise across multiple geographies, and demand for PANW’s solutions remains robust. Now, the company is looking to boost its portfolio of services with the addition of the two startups, which are less than five years old.
According to the report, the deal pegs Talon’s valuation between $600 million and $700 million and Dig’s valuation between $300 million and $400 million. While Dig’s expertise lies in data security across public clouds, Talon has developed an enterprise browser for security distributed workforces.
Between them, Talon and Dig have raised about $188 million so far. The deal could prove to be a potential winner for PANW as both these companies are catering to a growing market category. Enterprise spending on cloud and cybersecurity continues to increase, and the rise of AI only accelerates this process.
What is the Price Target for PANW?
Overall, the Street has a consensus price target of $280.66 on PANW, alongside a Strong Buy consensus rating. Shares of the company have surged by nearly 39% over the past year.
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