NETGEAR Inc. (NASDAQ:NTGR), known for its networking solutions and currently valued at $871 million, has entered into an agreement to acquire Exium, a cybersecurity company. This move is aimed at enhancing NETGEAR’s offerings for small and medium enterprises (SMEs) with integrated cloud-based networking and security solutions. According to InvestingPro analysis, NETGEAR maintains a strong financial position with more cash than debt on its balance sheet, suggesting ample resources for strategic acquisitions.
NETGEAR’s acquisition of Exium is set to add a Secure Access Service Edge (SASE) platform to its product lineup, marking the creation of a unified network and security solution, specifically designed for Managed Service Providers (MSPs) and SMEs. The integration aligns with the company’s strategy to deliver simplified, reliable, and cost-effective networking solutions. The company’s stock has shown remarkable strength, with InvestingPro data revealing a 120% return over the past year and trading near its 52-week high of $31.55.
The SASE market, as per Gartner’s forecast, is expected to grow at a compound annual growth rate of 29%, surpassing $25 billion by 2027. This growth is driven by the increased prioritization of cloud-based networking and security by organizations.
Pramod Badjate, President and GM of NETGEAR for Business, emphasized the importance of an all-in-one solution that can be easily deployed and managed, particularly for SMEs with limited IT resources. The Exium SASE solution is expected to complement NETGEAR’s Insight cloud management platform, offering customers a seamless management experience.
Exium’s CEO, Farooq Khan, who will join the NETGEAR for Business leadership team, remarked on the shared vision between the two companies to provide a comprehensive cybersecurity solution for SMEs.
The transaction is subject to customary closing conditions and is anticipated to be completed by the end of Q2 2025.
This strategic acquisition is based on a press release statement and reflects NETGEAR’s commitment to expanding its business connectivity solutions through cloud-based innovations. With a healthy current ratio of 2.99 and annual revenue of $671 million, NETGEAR appears well-positioned for this strategic expansion.
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