Palo Alto Networks (NYSE: PANW) announced on Tuesday that it has entered into an agreement to acquire Demisto, a cybersecurity company based in security orchestration, automation, and response (SOAR) space. Palo Alto has agreed to acquire Demisto for a total transaction valued at USD 560 Million in cash and stock.
Demisto’s SOAR platform combines orchestration, incident management and interactive investigation into a seamless experience. The orchestration engine automates security product tasks and integrates human analyst tasks and workflows.
With the addition of Demisto’s SOAR technology, it will help further accelerate Palo Alto’s Application Framework strategy and serve as a critical step to its ability to deliver immediate threat prevention and response for security teams.
Demisto’s automated playbooks have helped reduce alerts that require human interaction by as much as 95%, allowing security teams to focus more on serious and complex threats. The technology will help Palo Alto further its expansion into artificial intelligence and machine learning.
“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." said Nikesh Arora, Chairman and Chief Executive Officer of Palo Alto Networks.
Along with the addition of Demisto’s technology, the Company also brings its 150 customers to Palo Alto. A quarter of Demisto’s customers are Fortune 500 companies involved in large organizations such as healthcare, high technology, financial services, and other industry sectors.
The acquisition is expected to close during Palo Alto’s fiscal third quarter, subject to regulatory approvals and other closing conditions.