Check Point announces three startup acquisitions after mixed quarter – News

Check Point Software Technologies Ltd. has acquired three venture-backed startups to enhance its cybersecurity capabilities.

The company announced the deals, which are reportedly worth $150 million, today in conjunction with the release of its earnings report. Check Point significantly exceeded profit expectations but its sales missed the consensus estimate by a hair. The company’s share price dropped by almost 7% today.

Calcalist reported that Check Point spent $85 million, or more than half the sum earmarked for the acquisitions, to buy Tel Aviv-based Cyclops Security Ltd. The startup previously raised about $6.4 million in funding from a consortium that included the CrowdStrike Falcon Fund. Cyclops has built a data lake that can analyze cybersecurity data from different parts of a company’s infrastructure to spot risks.

The platform collects telemetry via more than 150 integrations with third-party software products. It organizes the data into a standardized format, removes duplicate items and uses artificial intelligence models to find patterns. Cyclops says that its platform can find unmanaged technology assets in a company’s network. It also identifies which of those assets contain vulnerabilities.

The two other startups that Check Point acquired are Cyata Security Ltd. and Rotate Inc. The companies have together raised more than $8 million in venture funding.

Cyata’s software enables administrators to define cybersecurity guardrails for AI agents. An information technology team could, for example, specify that an agent may only interact with a specific set of MCP servers. When an agent attempts to perform an unauthorized action, Cyata can either shut it or pause the workflow and request human approval.

Rotate provides a cybersecurity platform for managed service providers, or MSPs. Those are companies that manage other organizations’ IT infrastructure on their behalf. Rotate can spot insecure employee devices, phishing attempts, weak passwords and a long list of other risks.

Check Point stated today that the Rotate acquisition is part of an effort to grow the adoption of its cybersecurity software among MSPs. The company already has a presence in that market thanks to its email security tools, which block threats such as ransomware. Check Point disclosed in its earnings report that those tools’ annualized revenue passed $160 million in the fourth quarter.

The company’s overall sales grew 6% year-over year in the last three months of 2025, to $745 million. That’s $1 million higher than the midpoint of its guidance, but just short of the consensus estimate. Check Point’s profit, in contrast, handily surpassed analyst expectations. The company generated adjusted earnings of $3.40 per share while Wall Street forecasted $2.77.

In the current quarter, Check Point expects to earn up to $2.45 per share on revenue of $655 million to $685 million.

Photo: Wikimedia