Cloudflare to Buy Area 1 Security, for Approx. $162M

cloudflare

Cloudflare, Inc. (NYSE: NET) is to acquire Area 1 Security, a San Mateo, CA-based provider of a cloud-native platform, which works with any email offering, stops phishing attacks by discovering and eliminating them before they can inflict damage in a corporate environment.

Under the terms of the agreement, Cloudflare will acquire Area 1 Security for approximately $162m, subject to customary adjustments, with 40-50% of the price payable in shares of Cloudflare’s Class A common stock and the remainder payable in cash. The acquisition is expected to close early in the second quarter of 2022 and is subject to customary closing conditions. 

Cloudflare entered the email security market in 2021 with the launch of its Advanced Email Security Suite and additional tools to create custom email addresses, manage incoming email routing, and prevent email spoofing and phishing on outgoing emails. The company will integrate Area 1’s technology with its global network to give customers the most complete Zero Trust security platform available. By combining Area 1 Security’s scalable technology and years of experience in email protection with Cloudflare’s global network, the two companies will provide a holistic Zero Trust solution that customers can enable through Cloudflare’s global edge. 

Led by Patrick Sweeney, CEO and President, Area 1 Security is a cybersecurity company that protects the world’s email and cloud-based messaging from cyberattacks. The solution preemptively stops Business Email Compromise, malware, ransomware and other advanced threats by discovering and eliminating them before they cause damage. Its cloud-native platform, Area 1 Horizon™, delivers the only preemptive, comprehensive, contextual, and continuous email security, and identifies malicious campaigns earlier — 24 days before they launch — protecting users across all phishing vectors across the attack cycle. Area 1 is a Certified Microsoft Partner, and Google Cloud Technology Partner of the Year for Security.

FinSMEs

24/02/2022