Discount unicorn: Check Point pays $490 million for Perimeter 81, one year after being valued at $1 billion
Perimeter 81 develops Security Service Edge (SSE) solutions and Check Point intends to leverage its capabilities to deliver a unified security solution across the network, cloud, and remote users
Check Point has acquired Israel's Perimeter 81 for $490 million, marking its second-largest purchase in company history. This valuation could be considered as disappointing for Perimeter 81 as it was valued at $1 billion in its most recent funding round in 2022, raising $100 million in a Series C. Nevertheless, some investors, including Spring Ventures, listed on the Tel Aviv Stock Exchange, will net a generous profit from this sale.
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Perimeter has raised a total of $165 million to date and is estimated to still have around $50 million in cash in its coffers. The deal is expected to be finalized during the present quarter.
Perimeter 81 develops Security Service Edge (SSE) solutions and Check Point intends to leverage its capabilities and integrate them into Check Point Infinity’s architecture to deliver a unified security solution across the network, cloud, and remote users.
Perimeter 81, launched in 2018 by co-founders Sagi Gidali and Amit Bareket, has a team of over 200 employees, and serves more than 3,000 customers worldwide.
This is Check Point’s seventh acquisition in the last four years. All 18 of its acquisitions to date have been of Israeli companies. This new deal stands as the second-largest in Check Point history after the purchase of Pointsec for $550 million in 2007.
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“With the advent of hybrid work and the rise of cloud transformation, the demand for security services that expand beyond the network perimeter is increasing,” said Gil Shwed, CEO at Check Point Software Technologies. "By leveraging Perimeter 81’s capabilities and integrating them into the Check Point Infinity platform we continue with our vision to deliver the best security through comprehensive, collaborative and consolidated solutions.”
“This strategic move marks an exciting period for our company, partners, and customers. By joining Check Point, a global leader in cyber security for over 30 years, we aim to deliver the premier SASE platform in the market,” said Amit Bareket, CEO at Perimeter 81. "Our interconnection represents a significant step towards a comprehensive and scalable security for the modern era. We look forward to the positive impact we will jointly create."
