Just three days after announcing that it would acquire Fireglass, Symantec announced that it has agreed to acquire mobile security firm Skycure.
Founded in 2012 by two former members of Israel Defense Forces’ Unit 8200, Skycure has raised a total of $27.5 million in funding to date, and offers a threat prevention platform aimed at protecting mobile devices by monitoring network traffic behavior and fixing suspicious activity.
Symantec said that Skycure’s technology would be combined with its Integrated Cyber Defense Platform, giving Symantec customers “access to comprehensive and effective endpoint protection offerings across traditional and mobile devices, with enhanced capabilities for mobile devices, applications, network gateways and data protection.”
Symantec also said that gaining access to Skycure’s technology will help position the company to serve as a strategic partner for telecommunications companies looking to build out mobile security offerings for their end users.
While no financial terms were disclosed, analysts from investment firm Jefferies estimate the acquisition cost to be roughly $200 million.
“While it’s logical for [Symantec] to expand further into this market for a complete endpoint (desktop + server + mobile) offering, we note that it has been difficult to monetize mobile,” Jefferies wrote in a research note Tuesday. “Additionally, while we believe the go-to-market strategy to partner with telcos is logical, we note that it is likely at a substantially lower ASP than the direct channel. Therefore, we continue to believe that even traction gained within the telco channel may not be a meaningful contributor to revenue given greater go-to-market efficiency (i.e., lower price points).”
Jefferies also commented on the acquisition of Fireglass, calling it a “smart offensive and defensive move.”
“We saw the acquisition of Fireglass as a smart offensive and defensive move, as its browser isolation technology can be used to enter a new and potentially high-growth market, while defending the Symantec proxy solutions from any potential threat this market could pose,” the note added.
According to Symantec CEO Greg Clark, the company believes the future is “mobile-first” and requires protection that single platform vendors will struggle to provide on their own. “Our investments in this area will bring defense-in-depth across platforms including, closed operating systems,” Clark said in a statement.
“We believe the Skycure acquisition is logical given an increasingly mobile-first world, but believe that the return on this investment is incrementally less obvious given ongoing challenges to monetize mobile security,” Jefferies analysts opined.
