“As large organizations continue to see high growth in network traffic and the number of devices and users accessing their networks, the risk of breach increases exponentially. According to a recent Forrester study, 82 percent of companies surveyed are unable to even identify all devices accessing their networks. The integration of Bradford Networks’ technology with Fortinet’s security fabric enables large enterprises with the continuous visibility, micro-segmentation and access control technology they need to contain threats and block untrusted devices from accessing the network.”
– Ken Xie, Founder, Chairman of the Board and Chief Executive Officer, Fortinet
– Ken Xie, Founder, Chairman of the Board and Chief Executive Officer, Fortinet
“We are excited to join with Fortinet, the leader in network security to deliver exceptional visibility and security at scale to large enterprise organizations. Bradford Networks’ technology is already integrated with Fortinet’s Security Fabric including FortiGate, FortiSIEM, FortiSwitch and FortiAP products to minimize the risk and impact of cyber threats in even the toughest security environments such as critical infrastructure – power, oil and gas and manufacturing.”
– Rob Scott, Chief Executive Officer, Bradford Networks
Transaction Overview
- On June 4th, 2018, Fortinet, Inc. (NASDAQ: FTNT) announced the completed acquisition of Bradford Networks, Inc. ("Bradford Networks")
- Bradford Networks is a Boston-based network security firm recognized as a pioneer of network security for almost two decades. The company's next-generation network access control solutions play a critical role in securing BYOD, IoT and endpoint devices
- The company was founded in 2000 and had raised approximately $14 million in funding prior to the acquisition. Bradford Networks' patented, award-winning Network Sentry solution enables discovery of every endpoint and network infrastructure device, provides contextual awareness for implementing dynamic network access control, and drives the ability to contain a cyber breach through automated threat response
- Network Sentry leverages its SmartEdge Platform to easily integrate with customers' existing third-party networking, security, directory and mobility products to minimize the risk of unauthorized access to corporate assets and intellectual property, thereby reducing the impact, time, and costs of containing cyber threats
- Bradford Networks' solutions were utilized in more than 1,000 enterprise companies worldwide across many market sectors, including education, energy and utilities, finance, hospitality, government and defense, healthcare, manufacturing and retail. Widely recognized by Gartner and Forrester, Bradford Networks has won numerous awards
- Rob Scott, Chief Executive Officer of Bradford Networks, along with the rest of the Bradford team, joined Fortinet following the acquisition. The majority of Bradford Networks employees transferred to Fortinet and were integrated across multiple functions
- Fortinet acquired Bradford for approximately $17 million in initial consideration, net of cash acquired and subject to certain adjustments, with the potential for an additional $2 million in cash consideration as an earn-out subject to satisfaction of certain performance conditions
- Fortinet does not expect the transaction to have a material impact on the Company's second quarter or full year 2018 financial guidance
Transaction Significance
- Bradford Networks enhances the Fortinet Security Fabric by converging access control and IoT security solutions to provide large enterprise with broader visibility and security for their complex networks
- Complete, continuous, agentless visibility of endpoints, users, trusted and untrusted devices and applications accessing the network including IoT and headless devices
- Enhanced IoT security through device micro segmentation, dynamic classification of headless devices by type, profile, as well as automatic policy assignment to enable granular isolation of unsecure devices, all using a simple web user interface
- Accurate event triage and threat containment in seconds through automated workflow integrations that prevent lateral movement
- Easy, cost-effective deployment due to highly scalable architecture that eliminates deployment at every location of a multi-site installation
- Gartner predicts that the currently estimated 4 billion enterprise connected devices will grow to 7.5 billion in the next two years, making visibility and security of every device critical
- According to Gartner, IoT endpoints will sport a 32 percent compound annual growth rate (CAGR) from 2016 through 2021, reaching an installed base of 25.1 billion units
- NAC is evolving to be the long-term IoT security solution for enterprises, providing detailed profiling of each device on the network and enabling granular network segmentation and automated responses
Momentum Cyber's Role
- Momentum Cyber served as exclusive financial and strategic advisor to Bradford Networks
If you’re navigating a critical inflection point in cybersecurity growth, M&A, or capital strategy, Momentum Cyber brings unmatched sector expertise and senior-level advisory to every engagement. Let us advise you today and help you maximize value with confidence in an increasingly complex cyber landscape.