Credit: Shutterstock photoCybersecurity firm Proofpoint ( PFPT ) on Tuesday acquired privately held Cloudmark for $110 million, boosting its email and social-media software tools.
Sunnyvale, Calif.-based Proofpoint specializes in email and data-loss protection for corporate networks and cloud-computing infrastructure.
Proofpoint, in a release , described Cloudmark as "a leader in messaging security and threat intelligence for internet service providers and mobile carriers worldwide." Proofpoint said it expects the deal to close in the December quarter.
Proofpoint competes with Cisco Systems [ticker symb=CSCO), Symantec [ticker symb= SYMC) and FireEye ( FEYE ). Shares of Proofpoint fell 3% to 89.07 on the stock market today . It has gained nearly 28% in 2017.
IBD'S TAKE:Proofpoint has been consolidating in a flat-base chart pattern and has a buy point of 97.10, roughly 6.5% from where the stock is trading. Learn more about the Computer-Software Security group at IBDStock Checkup.
Cloudmark's customers include AT&T ( T ), Verizon Communications ( VZ ), Swisscom, Comcast ( CMCSA ), and Cox Communications.
In October, the company reported third-quarter earnings and revenue that topped estimates, but its fiscal 2018 billings outlook disappointed. Analysts expect Proofpoint to get a lift from increased corporate spending on cloud-computing applications.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
