Isranomics

Check Point bolsters cybersecurity with $490 Million Perimeter 81 acquisition

by | Aug 12, 2023 | Company Reporting | 0 comments

In a significant move that highlights the growing importance of cybersecurity in the age of remote work and cloud computing, Israeli cybersecurity company Check Point (NASDAQ: CHKP) has announced the acquisition of Israeli start-up Perimeter 81 for $490 million. This marks the seventh acquisition for Check Point in recent years, solidifying its position as a key player in the industry.

Perimeter 81, an Israeli start-up with a workforce of 200 employees and a client base exceeding 3,000 customers, specializes in Secure Service Edge (SSE) solutions. These solutions are designed to provide comprehensive protection for remote workers utilizing cloud services and edge devices. With a focus on fast and secure internet browsing, Perimeter 81’s services also prioritize user privacy. Notably, the company distinguishes itself by offering hassle-free and swift implementation, a process that takes just an hour, compared to the protracted timelines associated with traditional solutions. Integrating of Perimeter 81’s solutions into Check Point’s Infinity architecture promises enhanced capabilities and offerings for both organizations clients.

The backdrop against which this acquisition is occurring adds to its significance. The global shift towards remote work and the increasing reliance on cloud-based infrastructure have elevated the prominence of cybersecurity solutions like those provided by Perimeter 81. The company’s valuation received a boost a year ago, reaching unicorn status after a private market round that placed its value at an impressive $1 billion. However, Check Point’s acquisition is being executed at a lower valuation of $490 million.

It’s important to note that the acquisition cost cited represents the net amount, excluding Perimeter 81’s cash and debts. Nonetheless, this figure signifies a reduction in the company’s value compared to its valuation during the fundraising in 2022.

Commenting on the acquisition, Check Point’s Founder and CEO, Gil Shwed, emphasized the company’s commitment to delivering top-tier cybersecurity solutions that align with the evolving needs of companies. Shwed stated, “The accelerated transition to the cloud, as well as the need to protect employees wherever they are, has significantly expanded the protection requirements of organizations. Through this acquisition and the integration of the complementary capabilities of the two companies, we will fulfil our promise to produce the best cyber security in the world in an important and growing field.”

The acquisition of Perimeter 81 by Check Point underscores the critical role of cybersecurity in safeguarding the digital landscape, particularly as the dynamics of work continue to evolve in the digital age.

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