Despite no long-term debt, SentinelOne eyes cash, stock in Attivo buy

By Devika Patel

Knoxville, Tenn., March 16 – SentinelOne plans to use cash and stock to acquire Attivo Networks, an identity security and lateral movement protection company, for $616.5 million in the company’s upcoming fiscal second quarter.

SentinelOne announced the acquisition on Tuesday.

The company eliminated all $19,621,000 of its long-term debt last year and increased its cash reserves to nearly $1.7 billion compared to about $395 million a year ago.

“We’re acquiring Attivo for $617 million in a combination of cash and stock plus additional retention,” chief financial officer David Bernhardt said on the company’s fourth quarter and year ended Jan. 31 earnings conference call on Tuesday.

“We expect the deal to close in our fiscal second quarter, subject to customary closing conditions, including regulatory approval,” he said.

Cash and cash equivalents were $1,669,304,000 as of Jan. 31, 2022, compared to $395,472,000 as of Jan. 31, 2021.

The company had no long-term debt as of Jan. 31, 2022, compared to $19,621,000 of long-term debt as of Jan. 31, 2021.

Total revenue was $65.6 million for the fourth quarter of fiscal year 2022, a 120% increase compared to $29.9 million for the same period of fiscal year 2021.

Total revenue was $204.8 million for the year, also a 120% increase compared to $93.1 million for fiscal year 2021.

The company expects a large growth in revenue again for the current fiscal quarter and about 80% annual growth in revenue for the current fiscal year.

“We expect revenue of $74 million to $75 million [this quarter], reflecting annual growth of 99% at the midpoint,” Bernhardt said.

“For the full year, we expect revenue of $366 million to $370 million, reflecting annual growth of 80% at the midpoint,” he said.

Based in Mountain View, Calif., SentinelOne is a cybersecurity startup that offers a cybersecurity solution which encompasses AI-powered prevention, detection, response and hunting across endpoints, containers, cloud workloads and IoT devices in a single autonomous platform.

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