Nasdaq-listed cybersecurity company Imperva Inc. has signed an agreement to acquire network management startup Prevoty Inc. for $140 million cash, Imperva announced Thursday.
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Imperva also announced its second quarter of 2018 financial results on Thursday, reporting a $23.1 million GAAP net loss, compared to $3.5 million loss in the same period last year. Following the announcement, Imperva's stock dropped 15.16% to $48.1 by market close Friday. On Friday, investment firm Oppenheimer & Co. Inc. downgraded Imperva's rating from outperform to perform.
Founded in 2002, Tel Aviv-based, Redwood City, California-headquartered firm Imperva develops and sells information security software for databases and web apps.
In 2016 Elliott Associates LP, a unit of activist hedge fund Elliott Management Corporation, disclosed a 9.8% stake in Imperva, stating its intention to push for dramatic changes in the company. Since then, nine Imperva executives, including its three Israeli-born co-founders Shlomo Kramer, Amichai Shulman, and Mickey Boodaei, have left the company.
Founded in 2013, California-based Prevoty develops a real-time app management and monitoring technology. The company has raised $24.98 million to date and has about 30 employees, according to Pitchbook data.
As part of the deal, all Prevoty employees were offered positions at Imperva and Prevoty’s Los Angeles office will become an Imperva location.