Japanese security company Trend Micro is reportedly considering selling itself
Reuters reported that
Exclusive: Cybersecurity firm Trend Micro explores sale, sources say | Reuters
https://www.reuters.com/markets/deals/cybersecurity-firm-trend-micro-explores-sale-sources-say-2024-08-08/
Trend Micro Exploring Sale Amid Buyer Interest, Reuters Says - Bloomberg
https://www.bloomberg.com/news/articles/2024-08-08/trend-micro-exploring-a-sale-amid-buyer-interest-reuters-says
According to information obtained by Reuters from people familiar with the matter, Trend Micro is considering selling itself because it has become a target for takeover by multiple companies due to the continued weak yen and its share price being cheaper than its Japanese peers.
Trend Micro is reportedly working with investment banks to solicit interest from potential buyers, including private equity firms .
Reuters has reached out to Trend Micro for comment on the sale, but the company would only say, 'As a market-leading publicly traded cybersecurity company, we remain focused on transforming our business and growing our customers through our industry-leading AI platform.'
Trend Micro is an antivirus software manufacturer founded in 1988 by Steve Chang, Jenny Chang, and Eva Chen. The company has expanded its security-related products from antivirus software to cloud computing, network, and endpoint security. It was founded in the United States, but later moved to Taiwan. A subsidiary established in Japan then acquired the parent company's shares, reversing the parent-child relationship and becoming a company headquartered in Japan.
Trend Micro's stock price has fallen by more than 10% since the beginning of 2024, underperforming the Japanese market as a whole and its peers. Trend Micro is trying to improve its profitability by competing with major American security companies such as CrowdStrike, and has been trying to take market share from CrowdStrike following the July 2024 outage that caused Windows devices around the world to experience a blue screen of death .
Trend Micro announced its financial results for the second quarter of 2024 (April to June) on August 8, 2024, reporting sales of 68.6 billion yen, up 13% from the same period last year, and operating profit of 12.3 billion yen, up 42% from the same period last year.
Cybersecurity deals have also been on the rise as major companies have stepped up their spending on security software. Google's parent company, Alphabet, was recently reported to be planning to acquire cybersecurity company Wiz for $23 billion. Wiz rejected Alphabet's acquisition offer.
Security platform Wiz rejects $3.6 trillion acquisition by Google's parent company Alphabet, and will pursue IPO as originally planned - GIGAZINE
The sale of Trend Micro was reported on Wednesday, with the people speaking on condition of anonymity because the matter is confidential. Trend Micro's American Depositary Receipts (ADRs) rose nearly 10 percent.
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