SUNNYVALE, Calif., March 22, 2013 - Fortinet® (NASDAQ: FTNT) - a world leader in high-performance network security – today announced that it has entered into a definitive merger agreement to acquire Coyote Point Systems, Inc., a privately-held leading provider of enterprise-class application delivery, load balancing and acceleration solutions.
"This acquisition complements Fortinet's Network Security strategy and allows the company and our channel partners to accelerate and further deliver on our vision of providing complete and comprehensive security into the enterprise," said Ken Xie, founder, president and chief executive officer of Fortinet. "Furthermore, we expect this acquisition will generate synergy among existing Fortinet products, including our FortiGate®, FortiBalancer, FortiDDoS and FortiWeb&trade platforms."
"While Coyote Point has built a top class ADC product portfolio and loyal customer base, there has always been a trade off around resources," said Bill Kish, CEO and founder of Coyote Point. "We look forward to being a member of the Fortinet family and the opportunity to make strategic technology investments in our ADC platform."
"As more enterprises turn to the cloud, data centers are going to require higher performance solutions coupled with strong security," said John Grady, research manager at IDC. "In this environment, security and application delivery must work hand-in-hand, to ensure quality of service while still preventing attacks. This acquisition places Fortinet in a unique position to deliver on both aspects in one solution."
No immediate changes will be made to Coyote Point product offerings, customer support and channel programs or any existing ADC products that Fortinet markets. Future products and solution offerings will be announced upon their availability.
Coyote Point was founded in 1999 and markets the Equalizer ADC product line. Terms of the acquisition are not being disclosed; they are not expected to be material to Fortinet's Q1 operating results.
Application Delivery Controllers – the "next-generation of load balancers"
Application delivery controllers (ADCs) provide functions that optimize enterprise application environments. The market evolved from the load-balancing systems that were specifically developed to ensure the availability and scalability of websites. Enterprises use ADCs to optimize reliability, end-user performance, data center resource use and security for a variety of enterprise applications. According to industry forecasts, the annual end-user spending for Application Delivery Controllers will exceed $2 billion for 2013.
As part of Fortinet's FortiBalancer&trade series, the company currently offers an array of ADC solutions that serve small enterprises to carriers and cloud service providers.
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About Coyote Point
Coyote Point Systems Inc. is a leader in application delivery, acceleration and load balancing solutions that enable IT personnel to have greater control over their web and application servers. Coyote Point's Equalizer, Equalizer OnDemand, Envoy and VLB products provide the industry's foremost combination of performance, affordability and ease of use offering 24/7 server high-availability, optimized server performance, flexible scalability and secure application and network access.
About Fortinet (www.fortinet.com)
Fortinet (NASDAQ: FTNT) is a worldwide provider of network security appliances and a market leader in unified threat management (UTM). Our products and subscription services provide broad, integrated and high-performance protection against dynamic security threats while simplifying the IT security infrastructure. Our customers include enterprises, service providers and government entities worldwide, including the majority of the 2012 Fortune Global 100. Fortinet's flagship FortiGate product delivers ASIC-accelerated performance and integrates multiple layers of security designed to help protect against application and network threats. Fortinet's broad product line goes beyond UTM to help secure the extended enterprise - from endpoints, to the perimeter and the core, including databases and applications. Fortinet is headquartered in Sunnyvale, Calif., with offices around the world.