SentinelOne Acquisition Speculation: Potential Valuation and Top Contenders

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May 18, 2022
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SentinelOne Acquisition Speculation: Is a $26 Per Share Deal on the Horizon?

The SentinelOne acquisition rumor mill is churning with intensity. Based in Silicon Valley's cybersecurity hub, SentinelOne is gaining significant attention with talks of a potential sale. Some analysts even project its stock could rise to $26 a share in the event of an acquisition.

JMP Securities' expert, Trevor Walsh, has offered insights into how the SentinelOne acquisition could hit this valuation. His forecast leans on a 9.0x EV/revenue metric, anchored in the anticipated CY24E revenue. This isn't just arbitrary speculation; it's grounded in recent transaction data and the performance metrics of comparable public companies.

Stoking the SentinelOne acquisition flames, Reuters revealed that the cybersecurity giant has teamed up with Qatalyst Partners, a distinguished investment bank, to steer discussions with potential acquirers. Notably, Bloomberg spotlighted the budding interest of Wiz, a cybersecurity upstart with an impressive valuation close to $10 billion.

Who else might be keen on a SentinelOne acquisition? Walsh's insights indicate tech heavyweights like Google, Cisco, and Palo Alto Networks are potential bidders. On the private equity front, Thoma Bravo and Francisco Partners – both renowned for their strategic cybersecurity investments – are believed to be in the mix.

Historical data underscores that cybersecurity M&A activities often hover around a 9x enterprise value to revenue ratio. Considering SentinelOne's current 5.5x standing and juxtaposing it against the industry's 8.8x benchmark, this anticipated leap in the context of an acquisition seems plausible.

Wedbush’s Taz Koujalgi also weighed in, suggesting that in the unfolding SentinelOne acquisition narrative, the firm could command a valuation of $21 per share, given recent market trends.

*Note: Engage in thorough research before any investment decisions related to the SentinelOne acquisition.*