Fortinet, a global leader in cybersecurity solutions, has completed the acquisition of a cloud security firm specializing in AI-driven cloud-native application protection platforms (CNAPP). The acquisition, effective as of August 1, 2024, is expected to enhance Fortinet’s capabilities in securing cloud environments and strengthen its position in the cybersecurity industry. Ken Xie, Fortinet’s Founder, Chairman of the Board, and CEO, stated, “The addition of this acquisition aligns with Fortinet’s commitment to protect our customers with solutions that provide consistent security across on-premises and cloud environments.”
The integration of the acquired cloud-native platform with Fortinet’s Security Fabric is set to create one of the most comprehensive AI-driven cloud security platforms available from a single vendor.
The acquired technology has been recognized by industry analysts and was recently cited in the 2024 Market Guide for Cloud-Native Application Protection Platforms. The acquisition brings 225 patents and applications to Fortinet’s portfolio, many of which are related to cloud security and artificial intelligence. This addition increases the company’s global patent count to over 1,800, surpassing the combined total of the nearest three pure-play security vendors.
Fortinet has also acquired an experienced sales team and a group of engineers from the acquisition. These new team members are expected to play a key role in delivering industry-leading solutions to Fortinet’s customers.
Fortinet’s cloud security enhancement
The financial details of the transaction have not been disclosed. However, analysts from Forrester estimated the deal to be worth between $200 million and $230 million. This strategic move by Fortinet is part of a broader trend in the cybersecurity industry, where companies are increasingly looking to bolster their cloud security offerings as more businesses migrate to cloud environments.
The acquisition demonstrates Fortinet’s commitment to evolving cybersecurity solutions that address the challenges of modern cloud-based infrastructures. Despite recent mixed financial results and analyst revisions, Fortinet’s Secure Access Service Edge (SASE) offering has shown growth, with a notable increase in its mix to 24% and a year-over-year pipeline growth of 45%. The acquisition is expected to further enhance Fortinet’s security offerings, particularly in the expanding SASE market.
The transaction is anticipated to close in the second half of 2024, subject to regulatory approvals and customary closing conditions. As the threat landscape continues to evolve, Fortinet’s integration of advanced AI and cloud-native technologies promises to offer enhanced security measures for both existing and new customers.
