Acquisition Further Boosts Fortinet’s Presence in Enterprise; Expands Offerings in ADC (Application Delivery Controller) Market
SUNNYVALE, Calif., March 22, 2013 - Fortinet® (NASDAQ: FTNT) - a world leader in high-performance network security – today announced that it has entered into a definitive merger agreement to acquire Coyote Point Systems, Inc., a privately-held leading provider of enterprise-class application delivery, load balancing and acceleration solutions.
“This acquisition complements Fortinet’s Network Security strategy and allows the company and our channel partners to accelerate and further deliver on our vision of providing complete and comprehensive security into the enterprise,” said Ken Xie, founder, president and chief executive officer of Fortinet. “Furthermore, we expect this acquisition will generate synergy among existing Fortinet products, including our FortiGate®, FortiBalancer, FortiDDoS and FortiWeb platforms.”
“While Coyote Point has built a top class ADC product portfolio and loyal customer base, there has always been a trade off around resources,” said Bill Kish, CEO and founder of Coyote Point. “We look forward to being a member of the Fortinet family and the opportunity to make strategic technology investments in our ADC platform.”
“As more enterprises turn to the cloud, data centers are going to require higher performance solutions coupled with strong security,” said John Grady, research manager at IDC. “In this environment, security and application delivery must work hand-in-hand, to ensure quality of service while still preventing attacks. This acquisition places Fortinet in a unique position to deliver on both aspects in one solution.”
No immediate changes will be made to Coyote Point product offerings, customer support and channel programs or any existing ADC products that Fortinet markets. Future products and solution offerings will be announced upon their availability.
Coyote Point was founded in 1999 and markets the Equalizer ADC product line. Terms of the acquisition are not being disclosed; they are not expected to be material to Fortinet’s Q1 operating results.
Application Delivery Controllers – the “next-generation of load balancers”
Application delivery controllers (ADCs) provide functions that optimize enterprise application environments. The market evolved from the load-balancing systems that were specifically developed to ensure the availability and scalability of websites. Enterprises use ADCs to optimize reliability, end-user performance, data center resource use and security for a variety of enterprise applications. According to industry forecasts, the annual end-user spending for Application Delivery Controllers will exceed $2 billion for 2013.
As part of Fortinet’s FortiBalancer™ series, the company currently offers an array of ADC solutions that serve small enterprises to carriers and cloud service providers.
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About Coyote Point
Coyote Point Systems Inc. is a leader in application delivery, acceleration and load balancing solutions that enable IT personnel to have greater control over their web and application servers. Coyote Point’s Equalizer, Equalizer OnDemand, Envoy and VLB products provide the industry's foremost combination of performance, affordability and ease of use offering 24/7 server high-availability, optimized server performance, flexible scalability and secure application and network access.
About Fortinet (www.fortinet.com)
Fortinet (NASDAQ: FTNT) is a worldwide provider of network security appliances and a market leader in unified threat management (UTM). Our products and subscription services provide broad, integrated and high-performance protection against dynamic security threats while simplifying the IT security infrastructure. Our customers include enterprises, service providers and government entities worldwide, including the majority of the 2012 Fortune Global 100. Fortinet's flagship FortiGate product delivers ASIC-accelerated performance and integrates multiple layers of security designed to help protect against application and network threats. Fortinet's broad product line goes beyond UTM to help secure the extended enterprise - from endpoints, to the perimeter and the core, including databases and applications. Fortinet is headquartered in Sunnyvale, Calif., with offices around the world.
Copyright © 2013 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and unregistered trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet's trademarks include, but are not limited to, the following: Fortinet, FortiGate, FortiGuard, FortiManager, FortiMail, FortiClient, FortiCare, FortiAnalyzer, FortiReporter, FortiOS, FortiASIC, FortiWiFi, FortiSwitch, FortiVoIP, FortiBIOS, FortiLog, FortiResponse, FortiCarrier, FortiScan, FortiAP, FortiDB, FortiVoice and FortiWeb. Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties, and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, binding specification or other binding commitment by Fortinet, and performance and other specification information herein may be unique to certain environments.
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding the potential benefits and synergies of the acquisition and market opportunities. Although we attempt to be accurate in making forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. Important factors that could cause results to differ materially from the statements herein include the following: general economic risks; specific economic risks in different geographies and among different customer segments; unforeseen liabilities; ability to retain employees and customers of the acquired business; and integration risks; failure to convert sales pipeline into final sales; risks associated with successful implementation of multiple integrated software products and other product functionality risks; execution risks around marketing, new product development and introductions and innovation; market acceptance of new products and services; risks associated with management of growth; technological changes that make our products and services less competitive; competition and pricing pressure; and the other risk factors set forth from time to time in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and our other filings with the SEC, copies of which are available free of charge at the SEC's website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events.
We were looking to simplify network management and wanted a robust and consolidated security solution so that we didn't have to have multiple people managing the network. The Fortinet solution is allowing us enterprise-level security that is easy to use and meets our growing needs.