U.S. security giant Palo Alto Networks (NASDAQ:PANW) announced on Tuesday that it has entered into a definitive agreement to acquire cloud security start-up Dig Security. While the company failed to disclose the deal’s worth, sources close to the negotiation estimate it to be around $400M.
Notably, the development follows several recent reports that Palo Alto planned to acquire the Tel Aviv-based company and Talon Cyber Security. Palo Alto said the planned acquisition will give it access to Dig’s security capabilities.
Dig Security provides Data Security Posture Management, which helps businesses find, categorize, monitor, and secure sensitive data across cloud data repositories. Indeed, the Silicon Valley-based giant intends to integrate these capabilities into its Prisma Cloud platform to provide near real-time data protection from code to cloud.
According to Lee Klarich, chief product officer for Palo Alto Network, the acquisition is a strategic move by the company to position itself better in the growing cybersecurity sector. Additionally, Klarich noted that data transfer to the cloud will increase as companies build AI-enabled applications.
What is the Forecast for PANW Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on PANW stock based on 23 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average PANW price target of $276.88 per share implies a 13.68% upside potential.
