In another huge tech exit, Palo Alto Networks announced Monday that it was acquiring Tel Aviv-based Demisto, a leading security company in the security orchestration, automation and response (SOAR) space. Under the terms of the agreement, Palo Alto Networks will acquire Demisto for a total purchase price of $560 million to be paid in cash and stock. The proposed acquisition is expected to close during Palo Alto Networks’ fiscal third quarter, subject to the satisfaction of regulatory approvals and other customary closing conditions, the company said.
Founded in 2005, Palo Alto Networks, itself a company with roots in Israel, serves more than 50,000 organizations in over 150 countries, including 85 of the Fortune 100
SOAR technology involves using machine analysis and artificial intelligence (AI) to ferret through data collected and aggregated from vast amounts of security systems, analyzing alerts from a wide range of sources. The system automatically identifies vulnerabilities and alerts security teams that they are at risk before a cyber-attack can take place. Palo Alto said that Demisto’s automated security playbooks have helped reduce alerts that require human review by as much as 95 percent, allowing security teams to focus on the most complex threats. Demisto has over 150 clients, including many in the Fortune 500 working in healthcare, high technology, financial services and other industry verticals
“The addition of Demisto’s orchestration and automation technologies will accelerate Palo Alto Networks Application Framework strategy and serve as a critical step forward in the company’s aim to deliver immediate threat prevention and response for security teams. This well-developed approach will bring Palo Alto Networks closer to using AI and machine learning to help further automate significant parts of the company’s customers’ security operations,” the company said.
Commenting on the deal, Demisto CEO Slavik Markovich said that the company had dedicated itself “to the challenge of automation because we believe that relying on people alone to combat threats will fail against the scale of today’s attacks. Palo Alto Networks strategy resonates with our own vision. And we have found a like-minded team that shares our conviction that the future of security is all about automation and AI. We’re thrilled to be joining them to help make it a reality.”