Check Point CEO Downplays Mellanox Acquisition

Selling a company can be a sign that management has grown tired and wishes to hand over the reins, Gil Shwed, co-founder and CEO of Nasdaq-listed network and cloud security company Check Point Software Technologies Ltd., said, commenting on Nvidia’s recent $6.9 billion acquisition of Israel-based chipmaker Mellanox Technologies Ltd. Shwed spoke at Calcalist’s annual Israeli Industry Conference held Tuesday in Tel Aviv.

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Mellanox’s acquisition, Nvidia’s largest to date, came after a long feud with activist investor Starboard Value LP, settled in June. 

Check Point is not for sale, Shwed said, adding that there aren’t many companies capable of buying the information security firm currently trading at a $19.67 billion market capitalization. To keep things at Check Point fresh he constantly changes management strategies and delegates authorities, Shwed added.

Check Point revenues totaled $1.9 billion in 2018, up 3% year-over-year, according to company earnings published January. GAAP earnings per share stood at $5.15, a 7% increase from 2017.