(Updates with analyst’s comment in third paragraph.)
Feb. 22 (Bloomberg) -- Juniper Networks Inc., the second- largest maker of networking equipment, purchased closely held Mykonos Software Inc. for $80 million in cash, adding products that bolster the security of Internet applications.
The acquisition, which closed on Feb. 13, complements Juniper’s existing security offerings, such as firewalls and protective systems within a corporate network, said Nawaf Bitar, general manager of Sunnyvale, California-based Juniper’s security division.
San Francisco-based Mykonos specializes in so-called intrusion-deception techniques, which lay traps for hackers trying to infiltrate a website, such as steering them down data dead ends. The technology will improve Juniper’s security products, a business where the company has struggled to compete with rivals such as Fortinet Inc. and Palo Alto Networks Inc., said Alkesh Shah, an analyst at Evercore Partners Inc.
“Mykonos, from what we’ve heard, makes very good software,” Shah said in an interview. Shah has an “overweight” rating on Juniper and a $26 price target.
Sales of Juniper’s SRX-series security devices fell 12 percent sequentially in the fourth quarter, the company said last month.
“SRX sales have not been as strong as we would have hoped,” said Shah, who is based in New York. “This is a nice addition to that portfolio.”
Juniper will absorb all 14 of Mykonos’s employees, and Mykonos offices in San Francisco, New York City, and Rochester, New York, will remain intact, Bitar said in an interview.
“This is a huge step forward for us, in that it fills a Web-application security gap we had,” Bitar said.
Shares of Juniper gained less than 1 percent to $23.92 at 2:29 p.m. in New York. The stock has dropped 44 percent in the past year.
--Editors: Jillian Ward, Nick Turner
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