Fortinet Strengthens Its Top-Tier Unified SASE Solution with Acquisition of Enterprise Data Security Company Next DLP

Rhea-AI Summary

Fortinet (NASDAQ: FTNT) has acquired Next DLP, a leader in insider risk and data protection, to enhance its data loss prevention (DLP) capabilities. This strategic move aims to strengthen Fortinet's position in the standalone enterprise DLP market and reinforce its leadership in integrated DLP within endpoint and SASE solutions. Next DLP's cloud-native SaaS data protection platform will be integrated into Fortinet's security service edge (SSE) offering and across the Fortinet Security Fabric.

Key highlights:

• Next DLP recognized in Gartner's 2023 Market Guides for DLP and Insider Risk Management Solutions
• Acquisition closed on August 5, 2024
• Fortinet aims to improve its Unified SASE solution with advanced DLP capabilities
• Integration expected to extend data security solutions to organizations worldwide

Positive

• Acquisition of Next DLP strengthens Fortinet's position in the enterprise DLP market
• Integration of Next DLP's technology enhances Fortinet's Unified SASE solution
• Expansion of data protection capabilities across Fortinet Security Fabric
• Next DLP recognized by Gartner in 2023 Market Guides for DLP and Insider Risk Management Solutions
• Potential for increased market reach and growth opportunities

Negative

• None.

Cybersecurity Analyst

Fortinet's acquisition of Next DLP is a strategic move to bolster its data loss prevention (DLP) capabilities. This strengthens Fortinet's position in both standalone and integrated DLP markets, particularly within endpoint and SASE solutions. The integration of Next DLP's cloud-native SaaS platform and AI/ML-based anomaly detection will enhance Fortinet's ability to protect against insider threats and data breaches.

This acquisition aligns with the growing importance of data security and insider risk management in enterprise cybersecurity strategies. It's likely to improve Fortinet's competitiveness in the Unified SASE market, where comprehensive data protection is becoming increasingly critical. The move also demonstrates Fortinet's commitment to innovation and maintaining its leadership in the cybersecurity space.

Financial Analyst

While specific financial details of the acquisition weren't disclosed, this move is likely to have a positive impact on Fortinet's market position and potential revenue growth. The DLP market is expanding rapidly, with a projected CAGR of 23.1% from 2021 to 2028. By integrating Next DLP's technology, Fortinet can tap into this growing market more effectively.

Fortinet's strategy of enhancing its offerings through targeted acquisitions has historically been successful. This acquisition should strengthen its competitive position against other major players in the cybersecurity space. Investors should watch for potential synergies and how quickly Fortinet can integrate Next DLP's technology into its existing product suite, as this will be key to realizing the full value of the acquisition.

Market Research Analyst

The acquisition of Next DLP by Fortinet reflects broader trends in the cybersecurity market. There's an increasing focus on integrated security solutions that can protect data across various environments - from endpoints to the cloud. This move positions Fortinet to better compete in the Unified SASE market, which is gaining traction as organizations adopt more distributed and cloud-based infrastructures.

Next DLP's recognition in Gartner's Market Guides for both Data Loss Prevention and Insider Risk Management Solutions underscores the quality of their technology. This acquisition could give Fortinet a significant edge in these rapidly growing market segments. It's a smart move that aligns with the industry's shift towards more comprehensive, AI-driven security solutions that can handle the complexities of modern enterprise data protection.

Strategic move will integrate Next DLP’s cloud-native SaaS data protection platform and leading AI/ML-based anomaly detection and classification capabilities to strengthen Fortinet’s offerings in standalone and integrated data loss prevention

SUNNYVALE, Calif., Aug. 06, 2024 (GLOBE NEWSWIRE) --

News Summary

Fortinet® (NASDAQ: FTNT), the global cybersecurity leader driving the convergence of networking and security, today announced that it has acquired Next DLP, a leader in insider risk and data protection. With this acquisition, Fortinet will improve its position in the standalone enterprise data loss prevention (DLP) market and strengthen its leadership in integrated DLP markets within endpoint and SASE in alignment with Fortinet’s business strategy.

“The acquisition of Next DLP supports our goal of steadily and strategically enhancing our solutions to continue protecting enterprises with the top security solutions on the market,” said Ken Xie, Founder, Chairman of the Board, and CEO at Fortinet. “Next DLP will significantly strengthen our data loss prevention capabilities, helping customers manage insider risk across SASE and endpoint deployments.”

“Innovating data security has been our sole focus since day one. By prioritizing the protection of our customers, we have developed leading solutions for insider risk and data protection,” said Connie Stack, CEO at Next DLP. “Data security and protection against insider threats are top priorities for enterprises, and integrating Next DLP with Fortinet will extend the reach of our leading data security solutions to organizations worldwide.”

Fredrik Halvorsen of majority shareholder Ubon Partners said, “We see tremendous potential in combining Next DLP’s innovative technology with Fortinet’s market leadership. This acquisition recognizes the technical excellence of Next DLP’s team and provides a great platform for their further growth and success.”

Next DLP has been recognized by industry analysts for its technology innovation and was recently named a Representative Vendor in the 2023 Gartner Market Guide for Data Loss Prevention¹ and the 2023 Gartner Market Guide for Insider Risk Management Solutions.² The company delivers a leading next-generation, cloud-native SaaS data protection platform that extends from endpoint to cloud.

As part of its commitment to offering enterprises a top-tier Unified SASE solution, Fortinet plans to integrate Next DLP’s technology to add advanced data loss prevention capabilities to Fortinet’s security service edge (SSE) offering, as well as integrate additional insider risk and data protection capabilities across the Fortinet Security Fabric.

Transaction Details
The deal has been signed and closed as of August 5, 2024.

Additional Resources

• Visit fortinet.com/trust to learn more about Fortinet innovation, collaboration partners, product security processes, and enterprise-grade products.
• Learn more about FortiGuard Labs threat intelligence and research and Outbreak Alerts, which provide timely steps to mitigate breaking cybersecurity attacks.
• Read about how Fortinet customers are securing their organizations.
• Follow Fortinet on Twitter, LinkedIn, Facebook, and Instagram. Subscribe to Fortinet on our blog or YouTube.

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, Magic Quadrant is a registered trademark of Gartner, Inc. and/or its affiliates and is used herein with permission. All rights reserved.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

¹ Gartner Market Guide for Data Loss Prevention, Ravisha Chugh, Andrew Bales, 4 September 2023.

² Gartner Market Guide for Insider Risk Management Solutions, Brent Predovich, 13 November 2023.

About Fortinet
Fortinet (NASDAQ: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices, and data everywhere, and today we deliver cybersecurity everywhere you need it with the largest integrated portfolio of over 50 enterprise-grade products. Well over half a million customers trust Fortinet's solutions, which are among the most deployed, most patented, and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including CERTs, government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog, and FortiGuard Labs. 

FTNT-F

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Media Contact:	Investor Contact:	Analyst Contact:
Michelle Zimmermann Fortinet, Inc. 408-235-7700 pr@fortinet.com	Aaron Ovadia Fortinet, Inc. 408-235-7700 investors@fortinet.com	Brian Greenberg Fortinet, Inc. 408-235-7700 analystrelations@fortinet.com

FAQ

What company did Fortinet (FTNT) acquire on August 5, 2024?

Fortinet (FTNT) acquired Next DLP, a leader in insider risk and data protection, on August 5, 2024.

How will the Next DLP acquisition impact Fortinet's (FTNT) data loss prevention capabilities?

The acquisition will significantly strengthen Fortinet's data loss prevention capabilities, improving its position in the standalone enterprise DLP market and enhancing its integrated DLP offerings within endpoint and SASE solutions.

What technology will Fortinet (FTNT) integrate from Next DLP?

Fortinet will integrate Next DLP's cloud-native SaaS data protection platform and AI/ML-based anomaly detection and classification capabilities into its security service edge (SSE) offering and across the Fortinet Security Fabric.

How does the Next DLP acquisition align with Fortinet's (FTNT) business strategy?

The acquisition aligns with Fortinet's strategy of enhancing its solutions to protect enterprises with top security offerings, particularly in the areas of data loss prevention and insider risk management within SASE and endpoint deployments.