Zscaler, a leading cloud security company based in San Jose, California, has recently completed the acquisition of cybersecurity startup Avalor. The deal, valued at $310 million in cash and equity, marks a significant expansion for Zscaler in the cybersecurity market.
The acquisition of Avalor will enhance Zscaler’s platform with a range of new capabilities. This includes streamlined reporting of security incidents, incident mitigation, asset discovery, data classification, security policy generation, and more. The founder and CEO of Zscaler, Jay Chaudhry, expressed his enthusiasm for the deal in a press release, highlighting the importance of data in leveraging artificial intelligence (AI) models for enhanced security.
While many solutions lack the necessary data context and knowledge, Zscaler operates the world’s largest security cloud, providing a vast amount of relevant data to train security-specific AI models. With the acquisition of Avalor, Zscaler aims to further identify vulnerabilities, predict potential breaches, and prevent cybersecurity incidents.
Avalor, co-founded by Raanan Raz and Kfir Tishbi, is a trusted source for cybersecurity assets, controls, identities, vulnerabilities, bugs, and other critical data points. It offers security teams the ability to aggregate, normalize, de-duplicate, and track risk data throughout the entire cybersecurity lifecycle.
What sets Avalor apart from other startups tackling similar problems is its capability to handle data from various sources in any format. Additionally, Avalor provides a unique set of vulnerability risk management and prioritization tools. This flexibility and comprehensive approach have made Avalor an attractive target for investment, securing $30 million from notable investors such as TCV, Salesforce Ventures, Jibe Ventures, and Cyberstarts.
With the acquisition, Avalor expects to benefit from Zscaler’s vast resources and customer base. Raz, in a blog post, emphasized the instant access to the resources that would have taken years to develop organically. These resources include 7,000 customers, 4,200 channel partners worldwide, and the validation of a $2 billion business.
The acquisition of Avalor marks the third acquisition for Zscaler, following the acquisition of Canonic and Trustdome. Canonic focused on protecting against cyberattacks targeting software-as-a-service products, while Trustdome provided a cloud infrastructure entitlement platform. Zscaler, founded in 2007, has become a major player in the cybersecurity industry since going public in 2018. With a market cap of approximately $30 billion and around 7,000 employees, Zscaler continues to expand its presence.
This acquisition aligns with the overall trend in the cybersecurity market. As the demand for advanced cybersecurity solutions increases, the sector is witnessing a surge in mergers and acquisitions. The acquisition of Avalor by Zscaler exemplifies this trend and may potentially fuel further activity in the cybersecurity M&A market.
Frequently Asked Questions
1. What is Zscaler?
Zscaler is a cloud security company headquartered in San Jose, California. It provides advanced cybersecurity solutions to organizations worldwide.
2. What is Avalor?
Avalor is a cybersecurity startup that specializes in handling and managing cybersecurity assets, controls, identities, vulnerabilities, bugs, and other critical data points.
3. What capabilities will Avalor add to Zscaler’s platform?
The acquisition of Avalor will expand Zscaler’s platform with capabilities such as streamlined reporting of security incidents, incident mitigation, asset discovery, data classification, security policy generation, and more.
4. How will the acquisition benefit Avalor?
With the acquisition, Avalor gains access to Zscaler’s extensive resources, including a large customer base, channel partners, and the validation of a $2 billion business. This instant access will accelerate Avalor’s growth and development.
5. What is the significance of this acquisition for the cybersecurity market?
The acquisition of Avalor by Zscaler reflects the growing trend of mergers and acquisitions in the cybersecurity market. It highlights the increasing demand for advanced cybersecurity solutions and the potential for further activity in the cybersecurity M&A market.
Sources:
– [Zscaler](https://www.zscaler.com/)
– [Avalor Blog](https://www.avalor.io/blog)
1. What is Zscaler?
Zscaler is a cloud security company headquartered in San Jose, California. It provides advanced cybersecurity solutions to organizations worldwide.
2. What is Avalor?
Avalor is a cybersecurity startup that specializes in handling and managing cybersecurity assets, controls, identities, vulnerabilities, bugs, and other critical data points.
3. What capabilities will Avalor add to Zscaler’s platform?
The acquisition of Avalor will expand Zscaler’s platform with capabilities such as streamlined reporting of security incidents, incident mitigation, asset discovery, data classification, security policy generation, and more.
4. How will the acquisition benefit Avalor?
With the acquisition, Avalor gains access to Zscaler’s extensive resources, including a large customer base, channel partners, and the validation of a $2 billion business. This instant access will accelerate Avalor’s growth and development.
5. What is the significance of this acquisition for the cybersecurity market?
The acquisition of Avalor by Zscaler reflects the growing trend of mergers and acquisitions in the cybersecurity market. It highlights the increasing demand for advanced cybersecurity solutions and the potential for further activity in the cybersecurity M&A market.
Sources:
– Zscaler
– Avalor Blog
The source of the article is from the blog publicsectortravel.org.uk