In Short:
Trend Micro, a Japanese cybersecurity firm valued at $6.5 billion, is considering a sale after receiving buyout offers. The company’s stock has underperformed, making it an acquisition target. Founded in 1988, Trend Micro offers antivirus and security services. Despite recent financial growth, it faces competition from U.S. rivals like Crowdstrike. The cybersecurity industry has seen increased dealmaking due to rising security software spending.
Trend Micro Explores Sale After Buyout Interest
By Milana Vinn
Trend Micro, a Japanese cybersecurity firm with a market value of about 950 billion yen ($6.5 billion), is considering a sale following interest from potential buyers, sources familiar with the matter revealed on Thursday.
Market Situation
The weakening of the yen in recent weeks and underperformance of Trend Micro’s stock in comparison to its Japanese counterparts have made the company an attractive acquisition target.
The company is collaborating with investment bankers to gauge interest from interested parties, including private equity firms. However, it is important to note that no deal has been finalized yet, as per the sources requesting anonymity due to the confidential nature of the discussions. Trend Micro has not responded to requests for comment at this time.
Company Background
Established in 1988 by technology industry executives Steve Chang, Jenny Chang, and Eva Chen, Trend Micro originally focused on anti-virus software. Over the years, the company has diversified its offerings to include cloud computing, network, and endpoint security solutions.
Despite a recent dip in share value, Trend Micro reported a positive performance in the second quarter, with a 13% year-over-year increase in net sales and a substantial 42% rise in operating income.
Industry Trends
The cybersecurity industry has witnessed a surge in deal-making activities, driven by heightened spending on security software by major global corporations. In a similar move, Google parent company Alphabet attempted a $23-billion acquisition of cybersecurity startup Wiz in July.
