eSentire expands partnership with TD SYNNEX in North America
WATERLOO, Ontario – eSentire, a prominent Managed Detection and Response (MDR) provider, has announced the broadening of its partnership with TD SYNNEX (NYSE:), a key global IT distributor and solutions aggregator. This expansion makes eSentire’s comprehensive MDR and Security Operations Center (SOC) Services accessible to partners in North America through TD SYNNEX’s network.
The collaboration aims to enhance cybersecurity for organizations by integrating eSentire’s open, AI-powered Extended Detection and Response (XDR) platform with 24/7 threat hunting and security operations expertise. eSentire’s MDR services are designed to help businesses of various sizes prepare for, endure, and recover from cyberattacks, covering their entire attack surface including on-premises and cloud environments.
eSentire’s MDR service is notable for its reported 99% reduction in threat detection and containment times compared to global averages. It also claims to offer robust compliance support and rapid threat response capabilities, boasting an average response time of 35 seconds and a Mean Time to Contain (MTTC) of 15 minutes.
The service expansion includes new offerings such as CrowdStrike (NASDAQ:) endpoint and identity protection, in conjunction with eSentire’s round-the-clock SOC and Managed Detection and Response support. The partnership also introduces eSentire packages featuring the proprietary Atlas (NYSE:) MDR Agent.
Scott Young, Senior Vice President of Product Management at TD SYNNEX, emphasized the company’s commitment to providing IT solutions that foster business growth both now and in the future. Bob Layton, eSentire’s Chief Channel Officer, highlighted the importance of simple, high-value offerings in the partner ecosystem, where over 90% of security spend is channeled.
eSentire will be present at the TD SYNNEX SMB Connect Symposium in Las Vegas from August 13-15, 2024, to showcase its service offerings.
eSentire, established in 2001, focuses on protecting critical data and applications for over 2000 organizations worldwide. TD SYNNEX, listed on the New York Stock Exchange under SNX, is a global IT distributor and solutions aggregator with a workforce of 23,000 serving over 150,000 customers in more than 100 countries.
In other recent news, TD SYNNEX has reported a year-on-year growth of 3% in gross billings for the second quarter of fiscal 2024, totaling $19.3 billion. Despite a 4% decline in net revenue, the company witnessed an improvement in gross margins. The company returned over $520 million to shareholders in the first half of the fiscal year and anticipates a free cash flow of approximately $1.2 billion for the fiscal year.
TD SYNNEX also announced key executive changes, including the appointment of Patrick Zammit as President and CEO, succeeding Richard Hume who will retire but continue to serve on the Board of Directors. The company has revised certain aspects of Hume’s retirement compensation, including full vesting of his restricted stock unit and stock option awards.
In analyst news, RBC Capital upgraded TD SYNNEX’s stock rating from Sector Perform to Outperform, citing expectations of solid growth in its Advanced Solutions segment. Meanwhile, BofA Securities revised its price target for TD Synnex to $132 from the previous $135, maintaining a Buy rating. These are recent developments, with TD Synnex expecting growth in the latter half of the fiscal year, driven by the upcoming PC market refresh and investments in AI.
InvestingPro Insights
In light of the expanded partnership between eSentire and TD SYNNEX, it’s worthwhile to consider the financial health and market position of TD SYNNEX (NYSE: SNX), as it plays a crucial role in distributing eSentire’s Managed Detection and Response (MDR) services. TD SYNNEX has been demonstrating a commitment to shareholder value, as evidenced by its aggressive share buyback strategy. This is an important signal of management’s confidence in the company’s future performance.
An InvestingPro Tip points out that TD SYNNEX has not only maintained dividend payments for 11 consecutive years but has also raised its dividend for 3 consecutive years. This consistency in rewarding shareholders is a testament to the company’s financial stability and dedication to returning value to its investors. For those interested in the company’s dividend history and future prospects, more InvestingPro Tips are available at InvestingPro, with 13 additional tips listed.
From a valuation standpoint, TD SYNNEX is trading at a P/E ratio of 15.63, which is relatively moderate when considering the company’s strong free cash flow yield, an aspect that suggests the stock might be undervalued. Moreover, the company has a prominent presence in the Electronic Equipment, Instruments & Components industry, which could be a key factor in its growth and stability.
InvestingPro Data further reveals that TD SYNNEX has a market capitalization of $9.58 billion, with a revenue of over $56 billion in the last twelve months as of Q2 2024. Despite a slight revenue decline of 7.4% during this period, the company’s gross profit margin remains at 7.06%, indicating that it has been able to maintain profitability.
These financial metrics and strategic insights from InvestingPro underscore TD SYNNEX’s role as a critical player in the IT distribution and solutions sector, which could potentially bolster eSentire’s reach and impact in the cybersecurity market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
