Major U.S. cybersecurity firm SentinelOne has reportedly been considering a sale following a significant reduction in share values over the past two years amid an economic slowdown, reports Reuters.
Investment bank Qatalyst Partners has been tapped by SentinelOne to provide guidance on talks with organizations that could potentially purchase the cybersecurity company, according to individuals close to the matter.
While SentinelOne had been valued at $8.9 billion in 2021, the firm has faced challenges in achieving profitability due to its offerings' low prices. After admitting to over-inflating annual recurring revenues, SentinelOne has reduced revenue growth estimates in its latest quarterly earnings report, which also noted plans to downsize its workforce by nearly 5%.
"While recent execution missteps have shaken investor confidence, we think the intrinsic value of the asset is much higher than the market ascribes and see a compelling risk-reward with valuation now at a 50% discount to peers on a growth-adjusted enterprise value/sales basis," wrote Morgan Stanley analysts.
