Palo Alto Networks announced a new acquisition that the cybersecurity provider expects to provide an advantage in deterring online hackers.
The company is paying $ 800 million to expand its portfolio. Expanse, a San Francisco-based internet surveillance company that will bring a new perspective to network security, according to Nikesh Arora, CEO of Palo Alto Networks.
“They are actually visible from the outside. Most security is from the inside out,” Arora said Monday in an interview with CNBC’s Jim Cramer.Bad money. “” You’ve spent four or five years building the skill and creating that skill from the outside. “
Expanse collects online information through what is known as an attack surface management platform in order to reduce the risk of cyber attacks by analyzing data through the eyes of hackers and finding vulnerabilities that can be mitigated before they are exploited by external actors. Arora said the new acquisition, which is expected to close in late January, will provide additional perspective to enable companies to have comprehensive, secure operations.
The Palo Alto Network Cortex suite of products, which includes detection, investigation, response and threat intelligence, is expanding.
“We’re starting our user conference tomorrow. We’re going to get all of our CIOs (chief information officers) and CISOs (chief information security officers) to sign up,” he said. “We’re giving them the chance to get a free report to actually see from the outside what the bad guys are seeing.”
The comments come after Palo Alto Networks beat Wall Street estimates in its quarterly report for the period ended October 31. Revenue rose 23% year over year to $ 946 million, above FactSet’s forecast of $ 922 million. The company posted earnings of $ 158.1 million, equivalent to $ 1.62 per share, more than 50% higher than last year’s earnings.
Earnings per share passed the $ 1.33 mark sought by analysts.
The stock hit a record close of $ 278.50 after rising more than 7% on a positive trading day on the broader exchange. The stock is up 20% since the start of the year, more than doubling from its nadir in March during the big sell-off sparked by the coronavirus pandemic.