Cyberark Software Ltd (NASDAQ:CYBR), the company that protects organizations from cyber attacks that have made their way inside the network perimeter, today announced that it has signed a definitive agreement to acquire privately held Viewfinity, Inc., a Waltham, Mass.-based provider of Windows least privilege management and application control software for $30.5 million in cash. The transaction is expected to close in the fourth quarter of 2015.
Acquiring Viewfinity enables CyberArk to remove administrative privileges from business users, and limit the privileges available to users and applications to only what is needed, allowing only trusted applications to run. This enables organizations to stop the progression of most malware-based attacks at the endpoint, limiting the attacker’s ability to move beyond their initial point of entry.
With the acquisition of Viewfinity, CyberArk will offer protection against privileged-based attacks targeting both business and IT users. Viewfinity’s integrated least privilege and application control solution, combined with CyberArk’s credential vaulting will provide a comprehensive endpoint privilege management solution from the established leader in privileged account security.
The Viewfinity offering is available as either an on-premise or SaaS-based solution.
“CyberArk’s acquisition of Viewfinity is another step forward in our strategy to advance the new security layer inside the network that is necessary to protect valuable corporate assets from cyber attacks,” said Udi Mokady, President and Chief Executive Officer of CyberArk. “Privilege vulnerabilities exist all throughout an organization’s IT infrastructure – whether deep within the network or on end user devices — and are exploited in 80-100% of advanced attacks. The addition of Viewfinity to the CyberArk solution extends privileged account security to the beginning stages of the attack cycle decreasing the probability of wider infection and lateral movement.”
The Viewfinity solution operates with a single agent on the endpoint that handles privilege management and application control, using a kernel-based architecture that provides deep forensics and detection capabilities. The solution also offers a variety of deployment options, allowing organizations to select the most effective strategy to speed time to value, simplify deployment processes and reduce costs.
“Windows privilege management is an important part of a robust privileged account security program and we are seeing increased customer demand for it, driven by both risk and regulatory requirements. By having this technology in-house, our customers will benefit from a single, trusted partner with an integrated solution addressing all of their privileged account security needs,” Mokady added.
“We are excited to become part of CyberArk to help advance the Privileged Account Security Solution as the critical new security layer to protect businesses from the most damaging cyber attacks,” said Gil Rapaport, Viewfinity president and co-founder. “With CyberArk, Viewfinity’s customers will gain from the company’s global presence and support capabilities, continued innovation and coming integration with the CyberArk Shared Technology platform.”
Expected Financial Impact of Viewfinity
For the fourth quarter of 2015, CyberArk currently expects the Viewfinity acquisition to have an immaterial impact on revenue and non-GAAP earnings per share. CyberArk currently believes that Viewfinity will contribute approximately $7 million to $9 million in revenue and will be accretive to non-GAAP earnings per share for 2016. Viewfinity has both a perpetual license and subscription-based revenue model. (Original Source)
Shares of CyberArk Software closed yesterday at $52.20. CYBR has a 1-year high of $76.35 and a 1-year low of $26.66. The stock’s 50-day moving average is $50.42 and its 200-day moving average is $58.78.
On the ratings front, CyberArk Software has been the subject of a number of recent research reports. In a report issued on September 25, Nomura analyst Frederick Grieb upgraded CYBR to Buy, with a price target of $62, which implies an upside of 18.8% from current levels. Separately, on September 21, Deutsche Bank’s Karl Keirstead upgraded the stock to Buy and has a price target of $65.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Frederick Grieb and Karl Keirstead have a total average return of 31.9% and 5.6% respectively. Grieb has a success rate of 90.6% and is ranked #65 out of 3769 analysts, while Keirstead has a success rate of 53.9% and is ranked #742.
Overall, one research analyst has rated the stock with a Sell rating, 2 research analysts have assigned a Hold rating and 7 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $64.17 which is 22.9% above where the stock closed yesterday.
CyberArk Software Ltd offers IT security solutions to protect organizations from cyber attacks. Its services include Maintenance and Support and Professional Services.