Acquisition enables the company to continue accelerating its Application Framework strategy.
Palo Alto Networks, the global cybersecurity leader, announced that it has entered into a definitive agreement to acquire Demisto, a leading security company in the security orchestration, automation and response (SOAR) space. Under the terms of the agreement, Palo Alto Networks will acquire Demisto for a total purchase price of $560 million, subject to adjustment, to be paid in cash and stock. The proposed acquisition is expected to close during Palo Alto Networks fiscal third quarter, subject to the satisfaction of regulatory approvals and other customary closing conditions.
"We are delighted to welcome Demisto into the Palo Alto Networks family. 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 cyberattacks." - Nikesh Arora, Chairman and CEO of Palo Alto Networks
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 automated playbooks have helped reduce alerts that require human review by as much as 95 percent, allowing security teams to focus on the most complex threats. This well-developed approach will bring Palo Alto Networks closer to using AI and machine learning to help further automate significant parts of the company's customers' security operations.
"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. 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." - Slavik Markovich, CEO of Demisto
Demisto has developed a highly effective go-to-market strategy that has enabled it to attract more than 150 customers, a quarter of which are in the Fortune 500 and include large organizations in healthcare, high technology, financial services and other industry verticals. Demisto plans to continue executing against the company's aggressive growth plans and leverage Palo Alto Networks distribution to achieve its ambitious goals. At the same time, Demisto will work closely with the Palo Alto Networks team to strengthen its existing integration with the Application Framework.
Demisto's Security Orchestration, Automation and Response (SOAR) Platform combines orchestration, incident management and interactive investigation into a seamless experience. Demisto's orchestration engine automates security product tasks and weaves in human analyst tasks and workflows. Demisto Enterprise, powered by its machine learning technology, acquires knowledge from real-life analyst interactions and past investigations to help SOC teams with analyst assignment suggestions, playbook enhancements, and best next steps for investigations. The platform (and you) get smarter with every analyst action.
About Palo Alto Networks
Palo Alto Networks are the global cybersecurity leader, known for always challenging the security status quo. Our mission is to protect our way of life in the digital age by preventing successful cyberattacks. This has given us the privilege of safely enabling tens of thousands of organizations and their customers. Our pioneering Security Operating Platform emboldens their digital transformation with continuous innovation that seizes the latest breakthroughs in security, automation, and analytics. By delivering a true platform and empowering a growing ecosystem of change-makers like us, Palo Alto Networks provides highly effective and innovative cybersecurity across clouds, networks, and mobile devices.