Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Instant Analysis: Microsoft Confirms Hexadite Acquisition

By Eric Volkman - Jun 13, 2017 at 7:29AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Media reports say that Microsoft is paying around $100 million for the cybersecurity specialist.

What happened?

Officially confirming a deal that had been previously been reported in the media, Microsoft ( MSFT -1.41% ) announced it signed an agreement to acquire privately held company Hexadite. Neither Microsoft or Hexadite disclosed the terms or the price of the acquisition, although media reports in late May put the latter at roughly $100 million.

Hexadite was founded in Israel but is now headquartered in Boston. In Microsoft's words, the company's mission is "delivering agentless, automatic incident investigation and remediation solutions."

Cyber-security display


Microsoft's executive vice president of the Windows and Devices Group, Terry Myerson, said that owning Hexadite "will augment our existing capabilities and enable our ability to add new tools and services to Microsoft's robust enterprise security offerings."

Once Hexadite is absorbed into the portfolio of its new owner, it will become part of Myerson's unit.

Does it matter?

This isn't the first time Microsoft has scooped up an Israeli cybersecurity specialist, and it probably won't be the last. The need for stronger and tighter security is obvious in a world that sometimes appears to be under constant cyber attack. That's particularly true for Microsoft. Even though we're well past the prime of the PC age, the company's software still powers much of the world's servers, desktops, and laptops (and not a few mobile devices).

Microsoft's Golden Age might be over, according to some, but the company still matters. Therefore, its efforts in the security field are critical not only for its own success but the general cyber health of the world. Plus, if we assume that approximately $100 million price tag is accurate, it's mere pocket change for the financially powerful Microsoft (the company's most recent cash and short-term investments figure stood at $126 billion).

In short, this feels like a sensible buy for the IT giant that can only bolster its cybersecurity efforts. I don't see much downside to this purchase.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Microsoft Corporation Stock Quote
Microsoft Corporation
$331.90 (-1.41%) $-4.73

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/30/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.