Web-security solutions vendor Check Point Software Technologies Ltd. (CHKP) clinched a deal with the Swiss-arm of Bank Leumi. Financial terms of the deal were not disclosed.

Bank Leumi is the international private banking center for the Leumi Group, which is one of the largest banking groups in Israel. The Leumi Group currently has 328 branches across 18 countries worldwide. The group deals with diverse domestic and international financial and non-monetary operations.

According to a bank official, one of its competitors lost several million dollars due to a data leakage. In an attempt to avoid such an event, Bank Leumi deployed Check Point’s Data Loss Prevention (DLP) solution. The deployment will simplify information technology management by securing critical data and maintaining certain security parameters.

The data leakage crises witnessed in major financial institutions across the world in the recent past is forcing financial institutions to scrutinize the informational security environment in their organizations. To fight such malpractices, some regulatory agencies have formulated a stringent informational security schedule, which has been made mandatory for institutions in the securities, banking, insurance, mortgage, health and similar economically critical sectors.

Though there are other DLP solutions available in the market, Bank Leumi selected Check Point’s solutions because of its easy-to-use and flexible features. We believe that Check Point’s success in Bank Leumi’s operations will attract other financial institutions in that region to deploy its DLP solutions to leverage the benefit of data security.

Check Point delivered an impressive fourth quarter, beating the Zacks Estimates both in respect of revenue and earnings per share. The quarter’s results also surpassed the company’s guidance.

We remain encouraged by the steady traction of Software Blade architecture (security solution) that will likely lead to solid revenue growth in the coming quarters. However, DLP offerings from Symantec Corp. (SYMC) are also quite good, offering competition to Check Point’s DLP line-up.

Currently, CheckPoint has a Zacks #3 Rank implying a short-term Hold recommendation.

 
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