Palo Alto Networks shares jumped Thursday on reports the cybersecurity company is turning to acquisitions after failed bids for Okta and Datadog. StreetInsider reported the company is now circling two smaller targets, Cribl and ClickHouse.
Palo Alto Networks stock jumped 11.1% through 10:05 a.m. ET Thursday on rumors the cybersecurity company is shifting into acquisition mode. The move follows two rejected takeover attempts over the past two years.
Two rebuffed bids on Okta and Datadog
Palo Alto Networks spent much of the past two years trying to acquire cybersecurity rivals Okta and Datadog, but management at both companies turned the offers down. Palo Alto Networks offered $13.5 billion for Okta, a company now worth $23 billion. It also offered $40 billion for Datadog, now worth $80 billion. Rebuffed on both counts, the company has moved on in search of easier targets.
Cribl and ClickHouse are next in line
As StreetInsider reported, Palo Alto Networks is now circling two new targets: Cribl and ClickHouse. Cribl, an artificial intelligence and telemetry company, describes itself as having $200 million in annual recurring revenue, growing at 70%, and valued at $3.5 billion. ClickHouse, an AI-powered cyber company, says it has more than $250 million in ARR and a $15 billion private market value.
Of the two, Cribl is the only one that costs less than Palo Alto Networks' own 23.6x price-to-sales ratio, making it the closest thing to a bargain on the company's shopping list.
Source: Motley Fool
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