CrowdStrike to Acquire SecureCircle; Street Says Buy

Cybersecurity technology company CrowdStrike Holdings, Inc. (CRWD) announced that it has agreed to acquire SaaS-based cybersecurity service provider SecureCircle. The financial terms of the deal, which is likely to close during CrowdStrike’s fiscal fourth quarter, have been kept under wraps.

Following the news, shares of the company have declined marginally to close at $268.01 in the extended trading session on Monday.

With large-scale expertise in cloud-delivered endpoint and workload protection, CrowdStrike’s acquisition of SecureCircle will allow users to enforce Zero Trust at the device level, the identity level and at the data level, which will be delivered through CrowdStrike’s lightweight Falcon agent on the endpoint. Further, CrowdStrike Zero Trust Assessment will enable dynamic risk mitigation for customers.

The CEO of CrowdStrike, George Kurtz, said, “Data loss prevention has suffered from a lack of innovation and legacy tools have completely failed to live up to the promise of preventing breaches. CrowdStrike will be setting a new standard for endpoint-based data protection by connecting Zero Trust enforcement to the device, the user identity and, with this acquisition, the data users are accessing and using.” (See CrowdStrike stock chart on TipRanks)

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Recently, JMP Securities analyst Erik Suppiger reiterated a Buy rating on the stock with a price target of $310, which implies upside potential of 15.2% from current levels.

Consensus among analysts is a Strong Buy based on 16 Buys and 3 Holds. The average CrowdStrike price target of $315.83 implies upside potential of 17.3% from current levels. Shares have gained about 116.3% over the past year.

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