With the most recent alleged terrorist attack on U.S. soil, as well as the many recent cyber security breaches being announced by many U.S. multinational Corporations, it appears as though the cyber security and security stocks in general that operate to protect Americans here and abroad may be ripe for consolidation and buyout offers, as the area is fragmented with equity companies that can benefit from mergers of equals. According to Gartner, companies that operate on- line will have to increase their spending on cybersecurity which is estimated to reach more than $100 billion dollars in 2019. Leading cyber-security company McAfee said that cyber warfare and espionage will increase in the next few years due to substantial growth in the number of connected devices used.This makes the cybersecurity area potentially one of the fastest-growing segments to invest in as of now.
Buyout Attempts / Rumors?
Fireeye (FEYE) stock jumped late Wednesday on a Bloomberg report that it had snubbed a pair of lowball takeover bids, including one from Blue Coat Systems-acquirer Symantec(SYMC), according to unnamed sources. Wednesday, FireEye stock rose 4%, to 16.05, after earlier rising as much as 7.6% on the report of the two bids that FireEye reportedly rebuffed this year. Still, FireEye stock is down 21% for the year amid a CEO transition and struggling sales.Both offers were below the $30 per share that FireEye expected when it hired Morgan Stanley to seek bids, the sources said. In March, the second bidder suspended negotiations, the sources told For the full article click here
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