Palo Alto Networks acquires cybersecurity company CirroSecure
Amid delivering better-than-expected third quarter earnings, Palo Alto Networks announced it is acquiring cybersecurity startup CirroSecure.
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Founded in 2013, the privately-held, Sunnyvale, Calif.-based business specializes in guarding Software-as-a-Service (SaaS) applications, honing in as closely as the user, folder and file levels to monitor activity and potential policy and data security violations.
Palo Alto Networks plans to use CirroSecure's resources to expand functionality on is own enterprise security platform for better guarding popular SaaS collaboration products from the likes of Salesforce.com, Google Drive, Box and Dropbox, among others.
"Until now, the tools haven't existed to effectively manage and secure SaaS applications," according to Palo Alto Networks in Wednesday's announcement. "These violations are prevented through the use of granular, context-aware policies that allow organizations to quickly quarantine users and data as soon as a violation has occurred to prevent loss of sensitive data."
Financial terms of the deal have not been disclosed.
Palo Alto said it intends to ship the fruits of this merger as a new subscription-based service, scheduled to roll out during the second half of 2015.
This is the third acquisition made by Palo Alto Networks and the first this year. In 2014, Palo Alto acquired ex-NSA founded startup Morta Security and Tel Aviv-based cybersecurity specialists Cyvera.
Although Palo Alto's third quarter results more than satisfied analyst expectations, shares dipped in after-hours trading.
The network security brand reported a net loss of $45.9 million, or 56 cents per share (statement).
Non-GAAP earnings were 23 cents per share on a revenue of $234.2 million, up 55 percent year-over-year.
Wall Street was looking for earnings of 20 cents per share with $223.22 million in revenue.
For the current quarter, Wall Street expects Palo Alto to close out the year with $247.67 million in Q4 revenue and earnings of 24 cents per share.
Palo Alto responded with a higher fourth quarter revenue guidance range of $252 million to $256 million with earnings projected to drop around 24 to 25 cents a pop.