Just 26 months after Avalor’s establishment, Zscaler, a well-known cloud security provider with headquarters in San Jose, California, announced that it has acquired the startup. The transaction, which is allegedly for $350 million, is Zscaler’s most recent calculated attempt to improve its standing in the quickly changing cybersecurity market.
The acquisition would enhance Zscaler’s platform with advanced features, such as faster reporting of security issues, incident mitigation, asset detection, data classification, and security policy development, according to a news release issued by founder and CEO Jay Chaudhry. Chaudhry underlined how crucial it is to use AI-driven solutions to find weaknesses and accurately forecast and stop breaches.
Co-founded by Raanan Raz and Kfir Tishbi, Avalor has created a Data Fabric for Security that combines, aggregates, and normalizes data from commercial and enterprise security systems. This creative method tracks risk data from discovery to remediation, giving security teams operational efficiencies and actionable insights.
The acquisition takes place at a time when AI-driven risks are on the rise in the cybersecurity space, necessitating large-scale security data use on the part of enterprises. Zscaler hopes to give clients improved real-time AI-driven analytics and decision-making capabilities by incorporating Avalor’s technology into its Zero Trust Exchange platform.
The CEO and co-founder of Avalor, Raanan Raz, expressed excitement about collaborating with Zscaler, pointing to the business’s vast resources and international presence as important elements in quickening Avalor’s growth trajectory. The acquisition is a testament to Zscaler’s innovation and customer-focused approach to meeting changing needs.
The purchase of Avalor by Zscaler is a component of a larger trend in the cybersecurity sector that is marked by a rise in M&A activity with the goal of enhancing capabilities and growing market presence. Organizations are prioritizing investments in cutting-edge technology to effectively defend their digital assets and manage risks in light of the growing threat landscape in cybersecurity.