Cloud-based endpoint security company reportedly hires Morgan Stanley, weighs its future
Carbon Black, which leverages analytics technology and the cloud for its CB Predictve Security Cloud endpoint security platform, is looking at a possible sale, according to a report in CTFN.
The Lowdown: The report of a potential sale comes at a time of change in the endpoint security space, just days after Broadcom announced a $10.7 billion deal to buy Symantec’s enterprise security business. Regardless of whether a sale is done, Carbon Black’s stock price, which had taken a hit earlier this month, got a boost on the news.
The Details: The decision by Carbon Black, which competes with the likes of CrowdStrike, to hire Morgan Stanley to help it explore a potential sale is a single example of a larger trend in the industry of larger IT vendors acquiring firms to bolster their security creds. Broadcom plans to incorporate Symantec’s enterprise unit into its expanding portfolio of infrastructure products and services once that deal closes, and that sale came a year after Cisco nabbed security start-up Duo Security for $2.35 billion.
Background: The news of a possible sale bolstered Carbon Black’s stock price by as much as 18% when the report was published. The company went public in May 2018, and overall shares have been up more than 22% over the past six months, according to Seeking Alpha.
A report in Press Recorder, however, noted that the stock fell 3.37% in the days before the story about the Morgan Stanley hiring was published. In the second quarter, the company saw revenue increase 19.4%, to $60.9 million, though it lost $14.6 million. At the Def Con 27 event in Las Vegas the day after the CTFN report, Carbon Black unveiled “Binee,” an open-source tool that enables researchers to run dynamic analysis of malware at the same speed, scale, and cost as static analysis.
Channelnomics Point of View: Carbon Black plays in a crowded and highly competitive field that includes such security firms as Cylance, Bitdefender, CrowdStrike, F-Secure, Malwarebytes, and Kaspersky, as well as major IT vendors like Dell and Cisco. It can continue to try to gain in the market on its own, but a sale to a larger player that needs to incorporate endpoint security into its larger portfolio could be a boon for both the company itself and its partners.