Check Point#Acquisitions

{{Infobox company

| name = Check Point Software Technologies Ltd.

| logo = Check-Point-2024-logo-color.svg

| logo_size = 200px

| image = Check Point HQ new wing.jpg

| image_size = 200px

| image_caption = In 2018, Check Point added a green wall to its headquarters in Tel Aviv.{{Cite web | url=https://xnet.ynet.co.il/architecture/articles/0,14710,L-3108494,00.html |title = בניין צ'ק פוינט מתהדר בקירות ירוקים: חברת האבטחה מציגה מהפך סביבתי}}{{Cite news|url=https://www.haaretz.co.il/gallery/architecture/.premium-MAGAZINE-1.4427178|title = שיחים במקום זכוכית: בעקבות הקמת הקיר הירוק הגדול בישראל| newspaper=הארץ }}

| type = Public

| traded_as = {{NASDAQ|CHKP}}

| key_people = {{ubil|Nadav Zafrir (CEO)|Gil Shwed (executive chairman)|Jerry Ungerman (chairman)|Dorit Dor (CTO)|Roei Golan (CFO)}}

| industry = {{ubl|Security software|Computer hardware}}

| products = FireWall-1, VPN-1, UTM-1,
Check Point Integrity,
Intrusion prevention systems,
End point security,
Security appliances,
Web application security,
Mobile security,
Cloud security,
Security management
Infinity Architecture

| revenue = {{nowrap|{{increase}} {{US$|2.57 billion|link=yes}} (2024){{cite web|url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1015922/000117891325000867/zk2532836.htm|title=Check Point Software 2024 Annual Report (Form 20-F) |date=17 March 2025 |publisher=U.S. Securities and Exchange Commission}}}}

| operating_income = {{decrease}} US$876 million (2024)

| net_income = {{increase}} US$846 million (2024)

| assets = {{increase}} US$5.75 billion (2024)

| equity = {{decrease}} US$2.79 billion (2024)

| num_employees = 6,669 (2024)

| subsid = ZoneAlarm

| founded = {{Start date and age|1993}} in Ramat Gan, Israel

| location = {{ubl|San Carlos, California, U.S.|Tel Aviv, Israel{{cite web|url=https://www.checkpoint.com/about-us/contact-us/|title=Contact Us|last=Check Point|date=7 May 2019|access-date=7 May 2019}}}}

| founders = {{ubl|Gil Shwed|Marius Nacht|Shlomo Kramer}}

| caption =

| website = {{URL|checkpoint.com}}

}}

Check Point Software Technologies Ltd. is an

Israeli multinational provider of software and combined hardware and software products for IT security, including network security, endpoint security, cloud security, mobile security, data security and security management.

History

Check Point was established in Ramat Gan, Israel in 1993, by Gil Shwed (CEO {{As of|2016|lc=on}}), Marius Nacht (Chairman {{As of|2016|lc=on}}) and Shlomo Kramer (who left Check Point in 2003).{{Citation

| title = Bloomberg Profile: Checkpoint Software Technologies Ltd.

| url = https://www.bloomberg.com/quote/CHKP:US

| journal = Bloomberg

}} Shwed had the initial idea for the company's core technology known as stateful inspection, which became the foundation for the company's first product, FireWall-1; soon afterwards they also developed one of the world's first VPN products, VPN-1.{{Citation

|title = CIO 20/20 Honorees—Innovator's Profile: Gil Schwed of Check Point Software Technologies Ltd

|url = http://www.cio.com/article/31405/CIO_20_20_Honorees_Innovator_s_Profile_Gil_Schwed_of_Check_Point_Software_Technologies_Ltd.

|author = Mayor, Tracy

|journal = CIO Magazine

|date = October 1, 2002

|access-date = November 9, 2009

|archive-date = February 25, 2012

|archive-url = https://web.archive.org/web/20120225053402/http://www.cio.com/article/31405/CIO_20_20_Honorees_Innovator_s_Profile_Gil_Schwed_of_Check_Point_Software_Technologies_Ltd.

|url-status = dead

}} Shwed developed the idea while serving in the Unit 8200 of the Israel Defense Forces, where he worked on securing classified networks.Savage, Marcia. [http://www.crn.com/news/channel-programs/18836954/gil-shwed-chairman-ceo-check-point-software-tech.htm Gil Shwed, Chairman & CEO, Check Point Software Tech] {{Webarchive|url=https://web.archive.org/web/20120914170200/http://www.crn.com/news/channel-programs/18836954/gil-shwed-chairman-ceo-check-point-software-tech.htm |date=2012-09-14 }}. CRN, Nov. 07, 2001.[https://books.google.com/books?id=MA0AAAAAMBAJ&dq=Gil+Shwed&pg=PA76 Gil Shwed, CIO], Oct 1, 2002

Initial funding of US$250,000 was provided by venture capital fund BRM Group.{{Cite web|url=https://mixergy.com/interviews/check-point-with-gil-shwed/|title = Exclusive interview with the founder of a $1.9 billion dollar cyber security company}}

In 1994 Check Point signed an OEM agreement with Sun Microsystems, followed by a distribution agreement with HP in 1995.{{Citation

| title = CheckPoint Software and HP sign distribution agreement; market-leading FireWall-1 solution now available through HP and its reseller channel.

| url = http://www.encyclopedia.com/doc/1G1-17461605.html

| author = Company Press Release

| journal = Business Wire |date=September 25, 1995

}} The same year, the U.S. head office was established in Redwood City, California.

By February 1996, the company was named worldwide firewall market leader by IDC, with a market share of 40 percent.{{Citation|title=CheckPoint Software Named Firewall Market Share Leader by IDC; Worldwide Market Share of 40 Percent Represents Significant Lead in Providing Enterprise Network Security Solutions. |url=http://www.encyclopedia.com/doc/1G1-17461605.html |author=Press Release |journal=Business Wire |date=February 5, 1996 |url-status=dead |archive-url=https://web.archive.org/web/20121011014921/http://www.encyclopedia.com/doc/1G1-17461605.html |archive-date=October 11, 2012 }} In June 1996 Check Point raised $67 million from its initial public offering on NASDAQ.{{Citation

| title = Industrial R&D as a national policy: Horizontal technology policies and industry-state co-evolution in the growth of the Israeli software industry

| author = Breznitz, Dan

| journal = Research Policy

| pages = 1465–1482

| volume = 36

| issue = 9

| doi = 10.1016/j.respol.2007.06.006

| year = 2007

| s2cid = 52064701

}}

In 1998, Check Point established a partnership with Nokia, which bundled Check Point's Software with Nokia's computer Network Security Appliances.

In 2003, a class-action lawsuit was filed against Check Point over violation of the Securities Exchange Act by failing to disclose major financial information.{{cite press release|url=http://globenewswire.com/news-release/2003/10/13/301591/46410/en/Notice-of-Filing-of-Class-Action-Lawsuit-Against-Check-Point-Software-Technologies-Ltd-Gil-Shwed-Jerry-Ungerman-Eyal-Desheh-Irwin-Federman-and-Alex-Vieux-CHKP.html |title= Notice of Filing of Class Action Lawsuit Against Check Point Software Technologies Ltd., Gil Shwed, Jerry Ungerman, Eyal Desheh, Irwin Federman and Alex Vieux – CHKP |date=October 13, 2003 |access-date=Jul 25, 2013}}

On August 14, 2003, Check Point opened its branch in India's capital, Delhi (with the legal name Check Point Software Technologies India Pvt. Ltd.). Eyal Desheh was the first director appointed in India.

During the first decade of the 21st century Check Point started acquiring other IT security companies, including Nokia's network security business unit in 2009.{{cite web

| url = https://www.checkpoint.com/press/2009/check-point-completes-nokia-acquisition-041309.html

| title = Check Point Completes Acquisition of Nokia Security Appliance Business

| date = 2009-04-13

| access-date = 2009-04-13

| url-status = dead

| archive-url = https://web.archive.org/web/20090416214132/http://www.checkpoint.com/press/2009/check-point-completes-nokia-acquisition-041309.html

| archive-date = 2009-04-16

}}

In 2018, the company discovered malware, which it named "AdultSwine", that was found programmed into around 60 apps on the Google Play Store, primarily those aimed at children. The bug would display pornographic ads that, when clicked on, would instruct victims to download more malicious software in an attempt to steal personal data.{{Cite news |title=Google deleted 60 games from its Play Store after pornographic ads were found |url=https://www.theverge.com/2018/1/12/16882854/google-play-store-porn-ads-malware-bug-adult-swine |access-date=2018-06-20 |work=The Verge}}{{Cite news |date=2018-01-12 |title=Google deletes 60 apps, many aimed at kids, that showed porn ads |url=http://www.siliconbeat.com/2018/01/12/google-deletes-60-apps-many-aimed-kids-showed-porn-ads/ |url-status=dead |archive-url=https://web.archive.org/web/20180621010816/http://www.siliconbeat.com/2018/01/12/google-deletes-60-apps-many-aimed-kids-showed-porn-ads/ |archive-date=2018-06-21 |access-date=2018-06-20 |work=SiliconBeat |language=en-US}} It's estimated that between 3 and 7 million users may have been infected.{{Cite news |date=2018-01-12 |title=Google pulls games apps with AdultSwine malware hidden inside |url=https://www.cnet.com/news/google-pulls-games-apps-with-adultswine-malware-hidden-inside/ |access-date=2018-06-20 |work=CNET |language=en}}

In 2019, researchers at Check Point found a security breach in Xiaomi phone apps.{{Cite web | url=https://www.timesofisrael.com/check-point-researchers-find-security-breach-in-xiaomi-phone-app/ |title = Check Point researchers find security breach in Xiaomi phone app|website = The Times of Israel}} The security flaw was reported preinstalled.{{Cite web | url=https://www.cnet.com/news/xiaomis-phones-had-a-security-flaw-preinstalled-on-millions-of-devices/ |title = Xiaomi phones came with security flaw preinstalled}}

Over the years many employees who worked at Check Point have left to start their own software companies. These include Shlomo Kramer, who started Imperva; Nir Zuk, who founded Palo Alto Networks; Ruvi Kitov and Reuven Harrison of Tufin; Yonadav Leitersdorf, who founded Indeni; and Avi Shua, who founded Orca Security.

In December 2024, Gil Shwed moved to become Executive Chairman of the Board of Check Point. Nadav Zafrir joined Check Point as the new Chief Executive Officer.{{cite web | url=https://www.checkpoint.com/press-releases/gil-shwed-takes-on-the-role-of-executive-chairman-of-the-board-of-directors-nadav-zafrir-becomes-ceo-at-check-point-software-technologies/ | title=Gil Shwed Takes on the Role of Executive Chairman of the Board of Directors, Nadav Zafrir Becomes CEO at Check Point Software Technologies }}

Critics

As of December 2023, Check Point Software continues to operate in Russia, selling its cybersecurity products in the country. Despite the Russian invasion of Ukraine, the company has maintained its office in Moscow and has faced criticism for its decision to remain active in Russia.[https://leave-russia.org/check-point-software Check Point Software's Operations in Russia - Leave Russia]

SofaWare legal battle

SofaWare Technologies was founded in 1999, as a cooperation between Check Point and SofaWare's founders, Adi Ruppin and Etay Bogner, with the purpose of extending Check Point from the enterprise market to the small business, consumer and branch office market. SofaWare's co-founder Adi Ruppin said that his company wanted to make the technology simple to use and affordable, and to lift the burden of security management from end users while adding some features.Interview with Adi Ruppin, Founder and Managing Director of SofaWare, by Berislav Kucan — Tuesday, 21 January 2003. [http://www.net-security.org/article.php?id=361] In 2001 SofaWare began selling firewall appliances under the SofaWare S-Box brand;Check Point bolsters new firewall appliance. Network World Dec 17, 2001. p. 15, 18 in 2002 the company started selling the Safe@Office and Safe@Home line of security appliances, under the Check Point brand. By the fourth quarter of 2002 sales of SofaWare's Safe@Office firewall/VPN appliances had increased greatly, and SofaWare held the #1 revenue position in the worldwide firewall/VPN sub-$490 appliance market, with a 38% revenue market share.Check Point Software Stakes Claim in Small Business Internet Security Space Company Duplicates Market-leading Enterprise Success in Sub-$490 Appliance Segment {{cite web |url=https://www.checkpoint.com/press/2003/infonetics031203.html |title=Check Point Software:Check Point Software Stakes Claim in Small Business Internet Security Space |access-date=2016-07-27 |url-status=dead |archive-url=https://web.archive.org/web/20130116135427/http://www.checkpoint.com/press/2003/infonetics031203.html |archive-date=2013-01-16 }}

Relations between Check Point and the SofaWare founders went sour after the company acquisition in 2002. In 2004 Etay Bogner, co-founder of SofaWare, sought court approval to file a shareholder derivative suit, claiming Check Point was not transferring funds to SofaWare as required for its use of SofaWare's products and technology. His derivative suit was ultimately successful, and Check Point was ordered to pay SofaWare 13 million shekels for breach of contract.

In 2006 the Tel Aviv District Court Judge ruled that Bogner SofaWare could sue Check Point by proxy for $5.1 million in alleged damage to SofaWare.{{Cite news|last=Arbel|first=Oded|title=Sofaware founder cleared to sue Check Point for $5.1 million |url=http://www.haaretz.com/business/economy-finance/sofaware-founder-cleared-to-sue-check-point-for-5-1-million-1.186085|access-date=14 June 2010|newspaper=Ha'aretz|date=April 25, 2006}} Bogner claimed that Check Point, which owned 60% of Sofaware, had behaved belligerently, and withheld money due for use of SofaWare technology and products Check Point appealed the ruling, but lost.Israeli Supreme Court, עא 2850/08 CHECK POINT SOFTWARE TECHNOLOGIES LTD נ' איתי בוגנר (עליון, א' רובינשטיין, ח' מלצר, נ' הנדל)

In 2009 the Israeli Supreme Court ruled that a group of founders of SofaWare, which includes Bogner, had veto power over any decision of SofaWare. The court ruled that the three founders could exercise their veto power only as a group and by majority rule.

In 2011 Check Point settled all litigation relating to SofaWare. As part of the settlement it acquired the SofaWare shares held by Bogner and Ruppin, and began a process of acquiring the remaining shares, resulting in SofaWare becoming a wholly owned subsidiary.Check Point 20-F SEC filing. 2011