Palo Alto Networks is acquiring a cybersecurity firm from the Silicon Valley, Demisto. The deal has been done at the total purchase price of $560 million. The $560 million deal is subject to adjustment and will be paid full in cash and stock according to Palo Alto Networks. The acquisition is expected to close in the fiscal third quarter and will be subject to regulatory approvals.
Demisto is a security startup based in San Francisco Bay Area and was founded by McAfee bigwigs in 2015. Demisto has been recognized for security orchestration, automation, and SOAR tools and has roughly 150 customers. A quarter of these customers are counted among the Fortune 500 companies.
The acquisition will especially help Palo Alto Networks’ orchestration and automation technologies as Demisto gets integrated into its application framework. The company said that “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”.
Demisto’s products will continue to be available to its customers after the deal is closed and the company’s co-founders will take their expertise to Palo Alto Networks.