Fortinet to Acquire Lacework, Enhancing the Industry’s Most Comprehensive Cybersecurity Platform
Fortinet (NASDAQ: FTNT) has agreed to acquire Lacework, a leading AI-powered cloud security company. Lacework's platform integrates CNAPP services, providing comprehensive security from code to cloud. The acquisition will enhance Fortinet's Security Fabric platform and support its Unified SASE expansion. This merger aligns with Fortinet's growth strategy and commitment to innovation. Financial terms are undisclosed, and the transaction is expected to close in the second half of 2024, subject to regulatory approvals.
- Fortinet will enhance its Security Fabric platform with Lacework's AI-powered cloud security technology.
- The acquisition supports Fortinet's expansion in the Unified SASE market.
- Fortinet is committed to a seamless transition for Lacework customers and partners.
- Lacework's existing customers will gain access to Fortinet's global reach and extensive resources.
- Integration of Lacework strengthens Fortinet's position in AI-driven cloud security.
- The financial terms of the transaction were not disclosed, leaving some uncertainty regarding the deal's valuation.
- The acquisition is subject to regulatory approvals, which introduces potential delays or complications.
- There may be integration challenges between Fortinet and Lacework's platforms.
Insights
Fortinet's acquisition of Lacework introduces significant implications for its financial landscape, enhancing Fortinet's portfolio with Lacework's AI-powered cloud security platform. This strategic move is poised to accelerate Fortinet’s growth in the burgeoning Unified Secure Access Service Edge (SASE) market. By integrating Lacework's capabilities, Fortinet aims to offer a comprehensive, full-stack AI-driven cloud security platform, setting it apart in a competitive market.
Short-term impact: Investors may witness an initial uptick in Fortinet's stock price due to positive market sentiment around the acquisition. However, the financial terms remain undisclosed, which adds a layer of uncertainty about the immediate financial impact. The acquisition costs and integration expenses could initially weigh on the financial performance.
Long-term impact: In the long run, the synergy between Fortinet and Lacework could lead to increased revenue streams and market share. The enhanced platform can attract a broader customer base, leveraging Fortinet's global reach and industry-leading threat intelligence. This could translate into higher recurring revenues and improved margins, bolstering Fortinet’s financial health.
It's critical for investors to watch regulatory approvals and integration progress. Successful integration can streamline operations and enhance profitability, while any hiccups could affect investor confidence.
Additionally, the cybersecurity market's growth trajectory is robust, with enterprises increasingly prioritizing cloud security solutions. Fortinet's strengthened portfolio places it well to capitalize on this trend.
The acquisition of Lacework by Fortinet underscores a strategic enhancement of Fortinet's cybersecurity capabilities. Lacework's AI-powered cloud-native application protection platform (CNAPP) is a game-changer, offering deep integrations across various cloud environments, which is increasingly vital as more businesses migrate to the cloud.
AI and machine learning: Lacework’s patented AI and machine learning technologies stand out, providing advanced threat detection and response capabilities. These technologies can process vast amounts of data quickly, identifying threats that traditional methods might miss. This integration can significantly reduce false positives and improve the accuracy of threat identification, a important factor for enterprise security.
Agent and agentless architecture: Lacework's architecture allows for flexible deployment, catering to diverse customer needs. This flexibility can be a key differentiator, enabling Fortinet to offer tailored solutions to its clients, potentially leading to higher customer satisfaction and retention.
The integration with Fortinet’s Security Fabric, which spans secure networking, AI-driven security operations and Unified SASE, can create a robust, unified security approach. This can help organizations protect their assets more cohesively, from code to cloud.
For investors, understanding the technological synergy between Fortinet and Lacework is crucial. The combined expertise and enhanced offerings can drive innovation, making Fortinet a more formidable player in the cybersecurity market.
Fortinet's acquisition of Lacework highlights a strategic move to bolster its presence in the rapidly growing cloud security market. The Unified SASE market, which Fortinet aims to dominate, is poised for significant growth as organizations increasingly adopt cloud-based solutions.
By integrating Lacework's advanced CNAPP into its Security Fabric, Fortinet not only expands its product offerings but also enhances its competitive edge. This comprehensive platform can address complex cloud-native security challenges, appealing to enterprises looking for integrated solutions.
Market positioning: Fortinet’s acquisition strategy aligns with its goal to offer end-to-end security solutions. With Lacework's strong customer base and advanced technology, Fortinet can potentially capture a larger market share, especially among enterprises prioritizing cloud security. The expanded product suite can drive cross-selling opportunities, increasing customer lifetime value.
The timing of this acquisition is also noteworthy. As cyber threats evolve, the demand for sophisticated, AI-driven security solutions is on the rise. Fortinet’s enhanced platform positions it well to capitalize on this trend, potentially leading to accelerated revenue growth.
Investors should consider the broader market dynamics and Fortinet's ability to leverage these trends. A successful integration can position Fortinet as a leader in cloud security, driving long-term value for shareholders.
Adds AI-Powered Cloud-Native Application Protection Platform (CNAPP) to the Fortinet Security Fabric, Accelerates Fortinet’s Unified SASE Expansion
SUNNYVALE, Calif. and MOUNTAIN VIEW, Calif., June 10, 2024 (GLOBE NEWSWIRE) -- Fortinet® (NASDAQ: FTNT), the global cybersecurity leader driving the convergence of networking and security, today announced that it has entered into a definitive agreement to acquire Lacework, the data-driven cloud security company.
Lacework delivers a leading AI-powered cloud security platform that seamlessly integrates all critical CNAPP services. With patented AI and machine learning technology, an agent and agentless architecture for data collection, a homegrown data lake, and a powerful code security offering, Lacework is trusted by nearly 1,000 customers to deliver comprehensive security from code to cloud.
Fortinet is renowned for its cybersecurity innovation with more patents than the nearest three competitors combined and over 100 inclusions in industry analyst reports, including recognition in eight Gartner® Magic Quadrant™ reports. Fortinet delivers its solutions as part of the Fortinet Security Fabric, an integrated cybersecurity platform that spans Secure Networking, AI-driven Security Operations, and Unified SASE, which includes access and cloud security.
Fortinet intends to integrate Lacework’s CNAPP solution into Fortinet’s Unified SASE offering, forming one of the most comprehensive, full stack AI-driven cloud security platforms available from a single vendor. This will help customers identify, prioritize, and remediate risks and threats in complex cloud-native infrastructure from code to cloud.
“Both Fortinet and Lacework are driven by a culture of innovation and integration,” said Ken Xie, Founder, Chairman of the Board, and CEO at Fortinet. “By integrating Lacework's leading AI-powered cloud security platform, we're enhancing our Security Fabric platform to offer customers an even more comprehensive solution. This acquisition reinforces our commitment to delivering consistent security across on-premises and cloud environments.”
“Lacework, partnering closely with our customers, has built a world-class solution to the most complex and varied cloud cyber risks and threats. Our vision to connect across security silos enables teams to work together to produce better security outcomes more quickly,” said Jay Parikh, CEO at Lacework. “Integrated into Fortinet’s platform, we can more deeply embrace these customers to truly solve for their end-to-end security challenges.”
This strategic acquisition aligns with Fortinet’s growth strategy in the Unified SASE market, which includes solutions for securing access and cloud, and underscores the company’s commitment to innovation and integration. As part of the acquisition, Fortinet is committed to a seamless transition for Lacework customers and partners. Backed by Fortinet's proven leadership and expertise, Lacework customers will be able to benefit from access to Fortinet's global reach, extensive scale, vast resources, and industry-leading threat intelligence while continuing to leverage their existing security infrastructure investments.
Financial terms of the transaction were not disclosed. The transaction, which is expected to close in the second half of 2024, is subject to required regulatory approvals and other customary closing conditions. Goldman Sachs & Co. LLC is acting as exclusive financial advisor to Lacework. Cooley LLP is acting as legal counsel to Lacework, and Fenwick & West LLP is acting as legal counsel to Fortinet.
Additional Resources
- Learn more about this news and Lacework’s cloud native platform in the Fortinet blog.
- Learn more about the state of cloud security in 2024 by reading Fortinet's latest report.
- Visit fortinet.com/trust to learn more about Fortinet innovation, collaboration partners, product security processes, and enterprise-grade products that contribute to delivering proven cybersecurity, everywhere you need it.
- Learn about Fortinet’s free cybersecurity training, which includes broad cyber awareness and product training. As part of the Fortinet Training Advancement Agenda (TAA), the Fortinet Training Institute also provides training and certification through the Network Security Expert (NSE) Certification, Academic Partner, and Education Outreach programs.
- 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, Magic Quadrant for Security Service Edge, Charlie Winckless, Thomas Lintemuth, Dale Koeppen, Published 15 April 2024
Gartner, Magic Quadrant for Endpoint Protection Platforms, Evgeny Mirolyubov, Max Taggett, Franz Hinner, Nikul Patel, Published 31 December 2023
Gartner, Magic Quadrant for Security Information and Event Management, Andrew Davies, Mitchell Schneider, Rustam Malik, Eric Ahlm, Published 8 May 2024
Gartner, Magic Quadrant for SD-WAN, Jonathan Forest, Naresh Singh, Andrew Lerner, Karen Brown, Published 27 September 2023
Gartner, Magic Quadrant for Enterprise Wired and Wireless LAN Infrastructure, Tim Zimmerman, Christian Canales, Nauman Raja, Mike Leibovitz, Published 06 March 2024
Gartner, Magic Quadrant for Network Firewalls, Rajpreet Kaur, Adam Hils, Thomas Lintemuth, Published 19 December 2022
Gartner, Magic Quadrant for Access Management, Henrique Teixeira, Abhyuday Data, Nathan Harris, Robertson Pimental, Published 16 November 2023 (Mentioned in the Honorable Mentions section)
Gartner, Magic Quadrant for Single-Vendor SASE, Andrew Lerner, Jonathan Forest, Neil MacDonald, Nat Smith, Charlie Winckless, Published 16 August 2023
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.
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
Copyright © 2024 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiMail, FortiSandbox, FortiADC, FortiAI, FortiAIOps, FortiAntenna, FortiAP, FortiAPCam, FortiAuthenticator, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiCWP, FortiDB, FortiDDoS, FortiDeceptor, FortiDeploy, FortiDevSec, FortiEdge, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFone, FortiGSLB, FortiHypervisor, FortiInsight, FortiIsolator, FortiLAN, FortiLink, FortiMoM, FortiMonitor, FortiNAC, FortiNDR, FortiPenTest, FortiPhish, FortiPlanner, FortiPolicy, FortiPortal, FortiPresence, FortiProxy, FortiRecon, FortiRecorder, FortiSASE, FortiSDNConnector, FortiSIEM, FortiSMS, FortiSOAR, FortiSwitch, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLM and FortiXDR. Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.
About Lacework
Lacework keeps organizations secure in the cloud, allowing them to innovate faster with confidence. Cloud security requires a fundamentally new approach and the Lacework platform is designed to scale with the volume, variety, and velocity of cloud data across an organization’s cloud environment: code, identities, containers, and multi-cloud infrastructure. Only Lacework provides Security and Development teams with a correlated and prioritized end-to-end view that pinpoints the largest risks and handful of security events that matter most. Learn more at www.lacework.com.
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| Michelle Zimmermann Fortinet, Inc. 408-235-7700 pr@fortinet.com | Peter Salkowski Fortinet, Inc. 408-331-4595 psalkowski@fortinet.com | Brian Greenberg Fortinet, Inc. 408-235-7700 analystrelations@fortinet.com |
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