Yahoo Finance CrowdStrike (CRWD) Closes Acquisition of Preempt Security
CrowdStrike CRWD on Wednesday announced that it has completed the acquisition of identity theft protection provider, Preempt Security. The transaction marked the second acquisition in CrowdStrike’s 10-year history after automated malware analysis system Payload Security in November 2017.
Notably, the cloud-based cybersecurity solution provider had entered into a cash-stock deal on Sep 23 to acquire Preempt Security for $96 million. Per the terms of the contract, CrowdStrike was supposed to pay $86 million in cash and the remaining $10 million in its common stocks.
Founded in 2014, Preempt Security is the first cybersecurity firm to offer Zero Trust and Conditional Access solution through continuously detecting and preempting threats based on identity, behavior and risk. Before the acquisition, the company had 71 employees, and had raised $27.5 million in three rounds of outside funding, according to a CRN report.
The acquisition is anticipated to enhance CrowdStrike’s Zero Trust security capabilities and fortify its Falcon platform. The addition of Preempt Security’s capabilities would enhance its Falcon platform’s capabilities to offer protection against identity-based attacks and insider threats.
CrowdStrike Holdings Inc. Price and Consensus
CrowdStrike Holdings Inc. price-consensus-chart | CrowdStrike Holdings Inc. Quote
On Sep 23, CrowdStrike’s co-founder and CEO George Kurtz wrote in a blog that “Preempt’s technology is not only an important component of the Zero Trust journey but it also allows customers to improve detection and prevention of attacks such as Zerologon or reconnaissance tools such as Bloodhound.”
CrowdStrike is focusing on strengthening its Zero Trust security capabilities. Earlier this year, the company entered into an alliance with Proofpoint PFPT, Okta OKTA and NetSkope, with the aim to help organizations implement a modern, comprehensive and integrated Zero Trust strategy.
CrowdStrike currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is salesforce.com, inc. CRM, which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Salesforce is currently pegged at 18%.
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