Palo Alto Networks Acquisition of Cyvera March 24, 2014 Exhibit 99.2 * * * * |
Page 2 | ©2014 Palo Alto Networks Transaction overview Company Company Cyvera Consideration Consideration Approximately $200 million in transaction value: Approximately $88 million in cash Approximately $112 million in stock Financials Financials Immediately expands TAM by over $4 billion Significant opportunity as driver for continued outsize revenue growth SaaS-based model: adds additional subscription revenue Timeline Timeline The transaction was approved by both boards and is subject to customary conditions and regulatory reviews |
Strategic combination • Extensible platform based on disruptive innovations: Next-Generation Firewall + WildFire + Cyvera • Tightly integrated and highly automated • End-to-end next generation enterprise security • Significant synergy opportunity to cross-sell to our existing install base of 16,000+ end-customers • Expands TAM immediately by $4B in the large and growing endpoint market • Extends the power of our platform model with newest SaaS-based offering • Cyvera’s unique & disruptive technology prevents endpoint attacks at critical exploit phase • WildFire cloud- based services prevent unknown threats and share intelligence • Next-Generation Firewall safely enables all applications and blocks network-based threats |
Page 4 | ©2014 Palo Alto Networks The Palo Alto Networks Next-Generation Security Platform Next-Generation Threat Cloud Gathers potential threats from network and endpoints Analyzes and correlates threat intelligence Disseminates threat intelligence to network and endpoints Next-Generation Firewall Inspects all traffic Safely enables applications Sends unknown threats to cloud Blocks network based threats Inspects all processes and files Prevents both known and unknown exploits Protects fixed, virtual, and mobile endpoints Lightweight client and cloud based Next-Generation Endpoint |
Page 5 | ©2014 Palo Alto Networks Palo Alto Networks is disrupting security – AGAIN Signature-only products Only blocks known threats Cannot detect zero day exploits or malware Inability to detect attacks at exploit phase Not integrated Detection-only products No prevention capabilities Inability to detect attacks at exploit phase Limited control over applications Bolt-on architecture Uniquely prevents attacks targeting endpoint and network Extensible platform spanning network, endpoint, and cloud Automated prevention |
Page 6 | ©2014 Palo Alto Networks Cyvera uniquely prevents endpoint-based attacks Real-time prevention of all core attack techniques prior to the exploit Only company focused on preventing core exploit techniques Prevents attacks at critical exploit phase No prior knowledge of the attack is needed Lightweight embedded agent within OS Protects endpoints from known and unknown exploits Protects unpatched systems Forensic evidence collected Sends unknown threats to cloud Watering-hole attacks European Aerospace (Infector) Stuxnet Night Dragon NASA / Nortel 25 DoD contractors RSA 2013 2012 2009 2010 2012 2011 2011 Cyvera would have successfully prevented every published zero day since 2009 |
Page 7 | ©2014 Palo Alto Networks Market Disruptions Sources: IDC, Worldwide Network Security 2013–2017 Forecast and 2012 Vendor Shares, July 2013 IDC, Worldwide Web Security 2013–2017 Forecast and 2012 Vendor Shares, July 2013 IDC, Worldwide Endpoint Security 2013–2017 Forecast and 2012 Vendor Shares, August 2013 IDC, Worldwide Specialized Threat and Protection 2013–2017 Forecast and 2012 Vendor Shares, August 2013 $4B+ expansion of TAM |
Page 8 | ©2014 Palo Alto Networks About Cyvera Description Description Innovative provider of cyber security solutions Employs advanced and unique exploit prevention techniques to prevent unknown malware on fixed, virtual, and mobile endpoints Location Location Tel-Aviv and San Francisco Technology Technology Cyvera TRAPS, launched in 2012 Client-based solution providing full protection on Windows-based endpoints, servers, virtual machines, and terminals. Additional operating systems, including mobile operating systems, expected to be covered within 12 months. Covers majority of most commonly exploited software applications Talent Talent 55 employees, of which 37 engineers based in Tel-Aviv |
Page 9 | ©2014 Palo Alto Networks Financial impact Cyvera product immediately augments our platform with an additional subscription offering SaaS model: billings to build ahead of revenue Billings and revenue ramping in 2H FY2015, meaningful revenue contribution in FY2016 Investing aggressively to capitalize on unique technology leadership and large market opportunity Short-term investment in non-GAAP operating expense Preliminary estimate: Q3’14 ~$1.5mm, Q4’14 ~$3.5mm, and FY’15 ~$25mm Cyvera to be free cash flow positive contributor in 1H FY2016 |
Page 10 | ©2014 Palo Alto Networks Conclusion Unique endpoint technology Unique endpoint technology Prevents attacks at the critical exploit phase Enhances our enterprise security platform Enhances our enterprise security platform Tightly integrated and highly automated end-to-end security Enhances TAM Enhances TAM Immediately adds $4B of enterprise endpoint market SaaS model SaaS model Adds additional subscription revenue |
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