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Fortinet Still Up on Revised IBM Rumors

Fortinet closed up more than 6% despite confirming that it wasn't exploring M&A talks with IBM.

NEW YORK (TheStreet) -- Fortinet (FTNT) - Get Fortinet, Inc. (FTNT) Report, whose shares surged Monday on rumors of a buyout by IBM (IBM) - Get International Business Machines (IBM) Report, confirmed that it is not in talks with the software giant, rebuffing an eariler Bloomberg News report.

The story, which claimed that the network sercurity systems-maker had engaged Morgan Stanley to explore strategic options, sent shares flying more than 20%.

Fortinet is "focused on building a strong independent company and is not in acquisition discussions with IBM," the company said in a statement.

Fortinet closed Monday afternoon up 6.27% to $31.88.

Fortinet

, which went public a year ago, has seen shares more than double within the last year. The company has also been rumored as an M&A target for

Hewlett Packard

(HPQ) - Get HP Inc. (HPQ) Report

,

Dell

(DELL) - Get Dell Technologies Inc Class C Report

, or

Oracle

(ORCL) - Get Oracle Corporation Report

.

Large technology companies are increasingly looking to address the need for sophisticated security software as online threats become more complicated with the rise of smartphones, tablets and cloud computing.

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The network security space has seen a rash of M&A in the last several months, including

HP's $1.5 billion acquisition of ArcSight (ARST)

and

Intel's

(INTC) - Get Intel Corporation (INTC) Report

purchase of

McAfee

(MFE)

for $7.7 billion

Shares of

Sourcefire

(FIRE)

, another rumored IBM acquisition target in the network security space, also rose 6.7% Monday to close at $25.17.

--Written by Olivia Oran in New York.

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