Palo Alto Networks Pursues Israeli Acquisitions to Strengthen Cloud Security
Palo Alto Networks, the American cybersecurity firm co-founded by Nir Tzuk, an Israeli entrepreneur, is in the process of acquiring Israeli companies to strengthen its position in the cloud security sector.
According to industry insiders, the company is currently in talks with two Israeli firms, with the combined deal estimated to be worth around one billion dollars. These acquisitions are aimed at enhancing security aspects related to corporate cloud usage.
Dig Security Acquisition: One of the companies under consideration is Dig Security, which specializes in preventing data leaks from cloud databases. Established in 2021, Dig Security has secured $45 million in funding since its inception. Its valuation has risen significantly, from $125 million in 2022 to a potential $300-400 million in just over a year. Prominent investors in Dig Security include Team8, a significant player in recent cyber acquisitions, along with investors like CrowdStrike, CyberArk, and Merlin Ventures. Signal Fair and Felicity are among the later-stage investors.
Negotiations between Palo Alto Networks and Dig Security have been ongoing for several months and are reportedly nearing completion. The deal is expected to close in the coming weeks, provided that its existence remains confidential, unlike what happened with the Apiiro acquisition. This move follows the acquisitions of Polar Security and Israeli firm Laminar, bought by IBM and Rubrik, respectively.
Dig Security holds a leading position among these companies and is likely the most expensive. It agreed to be sold only if it could double its value compared to the previous funding round. Dig Security’s security approach extends beyond identifying risky data configurations to include continuous monitoring of data interactions with databases, detecting malicious activity, and preventing attacks on organizations. It is estimated that Dig Security boasts a higher annual revenue rate compared to the other two recently acquired firms.
Talon Acquisition on the Horizon: Palo Alto Networks is also considering the acquisition of another Israeli firm, Talon, for an estimated $650 million. Talon specializes in endpoint security, particularly focusing on browser security. Palo Alto Networks recognizes the security vulnerabilities in widely used browsers like Google Chrome, which have been responsible for numerous data breaches. They view this as a critical area that needs protection.
Palo Alto Networks, led by CEO Nikesh Arora, has been actively pursuing acquisitions, with 17 acquisitions completed so far. The company, traditionally known for its hardware devices, is now seeking to strengthen its product offerings for organizations operating primarily in the corporate cloud. This strategic move positions Palo Alto Networks to compete with other industry giants such as CrowdStrike, Sentinel One, and Lacework.
In summary, Palo Alto Networks is actively expanding its presence in the cybersecurity landscape by strategically acquiring Israeli companies in the cloud security domain. These acquisitions highlight the company’s commitment to offering robust security solutions for organizations in the evolving landscape of corporate cloud usage.