OpenText (OTEX) announced Wednesday its acquisition of Bricata.
The acquisition adds next-generation network detection and response (NDR) technology to OpenText Security & Protection Cloud. OpenText is a Canadian company specializing in digital document management and data exchange. (See Analysts’ Top Stocks on TipRanks)
Strengthens Security & Protection Cloud
The acquisition of Bricata technology enables OpenText to extend its threat detection and network response. The Maryland-based company provides NDR security technologies that scan network traffic for vulnerabilities and threats, reducing the number of false positive security alerts, while responding to real threats in real time to maintain business networks operational and in a state of trust.
OpenText hasn’t disclosed the purchase price and current revenues of Bricata, but the company said they aren’t material to OpenText financials.
OpenText CEO and CTO Mark J. Barrenechea said, “As organizations benefit from digitization and the move to the Cloud, they also face new risks and challenges from cyberattacks. The addition of the deep-visibility Network Detection & Response solutions provides increased protection for our customers, allowing them to focus on productivity.”
Wall Street’s Take
On November 8, Barclays analyst Raimo Lenschow reiterated a Hold rating on OTEX and raised its price target to $58 (C$73.52). This implies 16.1% upside potential.
Overall, consensus on the Street is that OTEX is a Moderate Buy, based on one Buy and one Hold. The average OpenText price target of C$73.52 implies upside potential of 16.1% to current levels.
TipRanks’ Smart Score
OTEX scores a 3 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock returns are likely to underperform the overall market.