Cyberark Software Ltd (NASDAQ:CYBR) is up 12% in premarket trading after news that cyber security firm Check Point Software is in talks to buy the company.
If this acquisition is finalized, it would be Check Point’s largest yet. In 2015 the company acquired two Israeli companies. Lacoon Mobile Security for a rumored $100 million, and In February, Check Point bought Israeli cyber-security start-up Hyperwise for $60 million. According to TipRanks’ statistics, out of the 8 analysts who have rated the company in the past 3 months, 3 gave a Buy rating while 5 remain on the sidelines. Smarter Analyst ports that the average 12-month price target for the stock is $50.50, marking a 33 perecent upside from where shares last closed.
Check Point Software Technologies was established in Israel in 1993 by its CEO Gil Shwed. Today it is one of the world’s largest cyber security firms and pioneered the computer firewall two decades ago. Check Point competes in the antivirus industry against Avira, ESET, F-Secure, Kaspersky, McAfee, Panda Security, Sophos and Symantec.
Shares in CyberArk listed on the Nasdaq have fallen 50 percent from a high of $76.35 hit in June 2015. It currently has a market capitalization of $1.2 billion.
If a deal is completed, it would be Check Point’s largest acquisition to date. Check Point, with a market cap of $14.2 billion, had $3.6 billion in cash as of the third quarter of 2015.