- Though Palo Alto Networks' (PANW -4.3%) $200M acquisition of endpoint security startup Cyvera might lower its 2014 EPS by 10% and 2015 EPS by 20%, it also stands to increase the company's addressable market by a quarter to ~$20B, thinks FBN's Shelby Seyrafi.
- "We view this acquisition as a logical expansion of the company’s end market that enhances its ability to provide end-to-end threat protection," says Baird's Jayson Noland. He notes Palo Alto's management plans to create an "overlay sales force" to sell endpoint security solutions.
- FBR's Daniel Ives sees the deal, the latest in a string of high-profile security acquisitions (I, II), as part of a "massive consolidation in the security landscape" set for 2014. He thinks Fortinet (FTNT), Proofpoint (PFPT), and Imperva (IMPV) could be among the companies snapped up this year by larger tech firms.