Bethel Finances: Check Point buys compliance solutions co Dynasec

www.bethefinance.com

Check Point Software Technologies Ltd. (Nasdaq: CHKP) has announced the acquisition of Dynasec Ltd., a privately held Israeli company, based in Yokne'am, that provides governance, risk management and compliance (GRC) solutions. No financial details were disclosed, but the value of the deal is estimated at $10-20 million. It is expected to close within the next month.

According to Check Point's announcement, "The acquisition extends Check Point 3D Security that enables companies to view security as a business process, focusing on policy, people and enforcement. The combined security and GRC solutions will enable customers to manage their entire 3D Security process from corporate objectives, to policies and security enforcement -- maintaining a continuous holistic security and compliance picture."

Dynasec was founded in 2004. It has raised $3.5 million to date. One of its most prominent investors is David Assia, a co-founder of Magic Software Enterprises Ltd. (Nasdaq: MGIC; TASE: MGIC). Assia led a group of private investors that invested in Dynasec in 2008, and was appointed chairman of the company.

"Dynasec is a private company that deals in regulation and risk management," says Assia. "Public companies have reporting obligations to the authorities and regulators on risk management and regulation, such as internal controls and monitoring of decisions. Even before I joined, Dynasec had almost 100% of the banks in Israel and 90% of the insurance companies as customers. When I joined, we decided to expand sales overseas."

Dynasec now has customers in over 20 different countries and across many industries, including the financial services, telecommunications, government, energy and healthcare sectors. According to Assia, among these customers are RaboBank, one of the largest banks in the Netherlands, the Dutch national lottery, and insurance companies in France and the UK.

Dynasec enables its customers to use its systems on its servers, as a SaaS (software as a service) provider. It has annual sales in the millions of dollars, and employs 26 people, all of whom will be taken on by Check Point.

"By providing an easy way to define, manage and translate security policies into IT security controls, we are further enhancing the implementation of 3D Security for our customers," said Check Point president Amnon Bar-Lev. "This acquisition makes it very simple for customers to establish corporate policies that adhere to a wide range of global compliance regulations, and reinforces the importance of turning security into a business process."

Check Point's offering will include security, business and consulting services together with Dynasec's easy2comply GRC software solution. The company says that its solution will offer a simple way for businesses to automate the manual task of handling a growing number of regulations and compliance standards, and that integrating these tools with Check Point's existing security solutions enables customers to define and manage policies that can be applied to all of the company's leading protections, including firewall, VPN, application control, intrusion prevention, data loss prevention, mobile access, and endpoint security.