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Orange Business Services (“OBS”), a subsidiary of Orange (ORAN - Analyst Report), has beefed up its enterprise security service market share with the buyout of cyber defence company Atheos, for an undisclosed sum. The French incumbent claims that the acquisition will make it the numero uno player in Europe’s cyber defence sector.

The acquisition will give Orange leverage in network access control, data loss prevention and on-site crisis management, thus allowing it to offer multidimensional security for its clients. Following its integration with Atheos, the French carrier wants to operate under the Orange Cyberdefense brand name.

Atheos has 130 employees working with large French firms to accurately implement their security strategies. The size and infrastructural strength of OBS will help Atheos in delivering critical security solutions.

At present, OBS is supported by 8 security operations centre and its service is available in more than 220 countries and territories around the world. The subsidiary continues to strengthen its SAAS (Security as a Service) services as part of its Conquests 2015 strategic plan, which aims to improve operational efficiency by sharing different practices and business models to enhance group development.

Globally, enterprises are facing an increased number of hidden security threats and need to remain updated about the risks that they could face. OBS provides companies with cloud-based IT security solutions to analyse and manage their office security and take appropriate action, when necessary.

Orange Business Services is expected to deliver more than 10% growth per year through 2016. We believe this acquisition will fortify Orange’s security service business and offset its declining wireless business. It will also help the company to capitalize on the growing opportunity in the cloud-based security market.

Orange currently carries a Zacks Rank #3 (Hold). Other stocks to consider within the same industry are Ceragon Networks Ltd. , China Unicom Hong Kong Ltd. (CHU - Analyst Report) and Fairpoint Communications Inc. (FRP - Snapshot Report). All these stocks currently carry a Zacks Rank #2 (Buy).

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