Yahoo Finance Proofpoint to Buy Weblife, Extend Protection Capabilities
In a move to enhance its advanced threat-protection capabilities, Proofpoint, Inc. PFPT recently entered into a definitive agreement to buy Weblife.io for a total consideration of $60 million. The transaction is anticipated to close by the end of December 2017.
Founded in 2013, Hollywood-based Weblife.io is a leader in providing browser isolation solution. Weblife.io’s Internet-browsing software has anti-virus features which restrain malicious contents to affect devices while users browse.
According to the company’s website, Weblife.io solutions offers “secure, empower and simplify employee Internet use with a fully cloud based service to isolate and secure web use providing employees greater freedom and anonymity to conduct personal and high risk web browsing.”
Therefore, the acquisition will help the company extend its advanced threat-protection capabilities into personal email. Proofpoint intends to integrate Weblife.io’s solutions in a separate module within its Targeted Attack Protection (TAP) advanced threat suite which will be available for customers in the first half of 2018.
Explaining the importance of this deal, David Melnick, chief executive officer of Weblife.io stated, “Organizations are having to confront the reality that employees will check their personal email from the corporate network, and will also use their corporate devices to check their email at home after work, on the road, and everywhere in between.” He further added “By combining Proofpoint’s advanced threat detection capabilities with our unique browser isolation solution, enterprises can now secure both corporate and personal email from advanced threats and compliance risks.”
However, Proofpoint noted that the acquisition will not have any material impact on its fourth quarter or fiscal 2018 billings, revenues, net income and free cash flow.
Proofpoint has made strategic acquisitions to expedite growth. This is the company’s second acquisition this month. The company, in early November, had agreed to buy messaging security and threat intelligence provider Cloudmark for $110 million. Last year, the company made two important buyouts — FireLayers and Email Fraud Protection (EFP) business unit from Return Path.
We believe the aforementioned acquisitions have not only expanded Proofpoint’s product portfolio but also its customer and revenue base.
Proofpoint currently carries a Zacks Rank #3 (Hold). Notably, the stock has outperformed the industry to which it belongs to in the year-to-date period. Proofpoint returned 25.5% in the said period while the industry gained 21.3%.
Some better-ranked stocks in the same industry space are Imperva, Inc. IMPV, CyberArk Software Ltd. CYBR and Fortinet Inc. FTNT, all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term expected EPS growth rates for Imperva, CyberArk and Fortinet are 25%, 21.7% and 16.8%, respectively.
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