Fortinet Denies IBM Acquisition Talks

Network security firm Fortinet has denied reports that suggested it was in talks to be acquired by IBM.

Bloomberg had cited two sources claiming to know that the company was in acquisition talks with IBM and that it was being advised by Morgan Stanley.

However, Fortinet has since denied that any acquisition talks between the two companies have taken place, adding that it is focused on growing as a strong and independent company.

Fortinet said that "investors need to be aware of the error" and has asked the news agency to retract or modify the report.

After the initial news broke, Fortinet's shares closed up 6.27 per cent at $31.88. The shares had earlier reached $36.77.

Even after the company denied the report, investors continue to eye Fortinet as a prospective acquisition.

Computer and server manufacturers have been acquiring security firms to strengthen their product portfolio to match the in demand for enhanced security software in the enterprise server and data centre markets.