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Palo Alto snaps up start-up founded by McAfee executives for $560M
- 20 February, 2019 04:45
Palo Alto Networks has unveiled plans to buy U.S.-Israeli information security firm Demisto for US$560 million in cash and stock.
Demisto, founded in 2015 by four McAfee executives, develops and markets automation tools for information security management, including a chatbot that assists in handling tasks.
“Coupled with our Application Framework, Demisto will help us strengthen our commitment to security teams by delivering a platform that provides higher levels of integration, automation, and innovation to prevent successful cyber attacks,” said Nikesh Arora, chairman and CEO of Palo Alto Networks.
Last October, Demisto raised US$43 million in an investment round led by Greylock Partners, bringing total equity funding to US$69 million.
Accel Partners, ClearSky Security, Slack Technologies, Wipro Ventures, Secure Octane and Cerca Partners are also backers.
“We have dedicated ourselves 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,” added Slavik Markovich, CEO of Demisto.
“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.”
The proposed deal is expected to close during Palo Alto's fiscal third quarter, the company said.
Demisto's products will continue to be available to customers and partners after the deal closes and founders Slavik Markovich, Rishi Bhargava, Dan Sarel and Guy Rinat will join Palo Alto.
(Reporting by Arjun Panchadar in Bengaluru; Editing by Sriraj Kalluvila)