Orange Business Services ("OBS"), a subsidiary of
), has beefed up its enterprise security service market share
with the buyout of cyber defence company Atheos, for an
undisclosed sum. The French incumbent claims that the acquisition
will make it the numero uno player in Europe's cyber defence
The acquisition will give Orange leverage in network access
control, data loss prevention and on-site crisis management, thus
allowing it to offer multidimensional security for its clients.
Following its integration with Atheos, the French carrier wants
to operate under the Orange Cyberdefense brand name.
Atheos has 130 employees working with large French firms to
accurately implement their security strategies. The size and
infrastructural strength of OBS will help Atheos in delivering
critical security solutions.
At present, OBS is supported by 8 security operations centre
and its service is available in more than 220 countries and
territories around the world. The subsidiary continues to
strengthen its SAAS (Security as a Service) services as part of
its Conquests 2015 strategic plan, which aims to improve
operational efficiency by sharing different practices and
business models to enhance group development.
Globally, enterprises are facing an increased number of hidden
security threats and need to remain updated about the risks that
they could face. OBS provides companies with cloud-based IT
security solutions to analyse and manage their office security
and take appropriate action, when necessary.
Orange Business Services is expected to deliver more than 10%
growth per year through 2016. We believe this acquisition will
fortify Orange's security service business and offset its
declining wireless business. It will also help the company to
capitalize on the growing opportunity in the cloud-based security
Orange currently carries a Zacks Rank #3 (Hold). Other stocks
to consider within the same industry are
Ceragon Networks Ltd.
China Unicom Hong Kong Ltd.
Fairpoint Communications Inc.
). All these stocks currently carry a Zacks Rank #2 (Buy).
CHINA UNICOM (CHU): Free Stock Analysis
CERAGON NETWRKS (CRNT): Free Stock Analysis
FAIRPOINT COMM (FRP): Free Stock Analysis
ORANGE-ADR (ORAN): Free Stock Analysis Report
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