In what is expected to become a key addition to Fortinet‘s (NASDAQ: FTNT) new security fabric architecture, the digital security leader announced it had acquired AccelOps for $28 million in cash, plus an additional $4 million to be paid subject to future performance. Fortinet said the deal for AccelOps has already been completed, though it does not expect any material impact in the second quarter, nor even in fiscal 2016.
Fortinet’s security fabric is designed to seamlessly integrate disparate security silos across a network — enterprise, cloud, or hybrid cloud-based — into a cohesive whole. AccelOps and its “advanced analytics for multi-vendor security solutions, enabling automated and actionable security intelligence from IoT to the cloud” will extend Fortinet’s security fabric even further.
Similar to its peer Check Point Software Technologies(NASDAQ: CHKP), Fortinet is focused on offering its customers a platform solution, rather than taking a piecemeal approach to data security. As the world moves to the cloud, Fortinet’s security fabric and Check Point’s new data center appliances solutions will play key roles in determining those companies’ future growth.
Fortinet’s sales continue to grow: They jumped 34% in Q1, giving the company its third straight quarter of 30% or better revenue gains. While Check Point’s “meager” 9% quarterly revenue growth pales by comparison, its CEO, Gil Shwed, has a much better handle on spending, an area that Fortinet’s security fabric featuring AccelOps may help in the years ahead.
Fortinet spent $202.5 million in operating expenses last quarter, equal to 75% of its $284.58 million total sales. Check Point also spent $202 million for operations in Q1, but it generated $404.27 million in sales. Supporting Fortinet’s security fabric end-to-end to solution with the acquisition of AccelOps should, over time, help ease its expense burden, given the higher revenue opportunity of an all-in-one security platform, rather than the costs associated with selling a product here, and a product there.
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Tim Brugger has no position in any stocks mentioned.
Fortinet Expands Cloud Security With Acquisition
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