Palo Alto Networks’ shopping spree in Israel continue, and it is now acquiring a security automation and response (SOAR) startup Demisto for total $560 million.
Demisto has raised $69 million to date, 43 million of which raised last October from GreyLock Partners, Accel Partners, ClearSky Security.
This is Palo Alto’s fourth acquisition in Israel.
Demisto founded in July 2015 by CEO Slavik Markovich, VP marketing Rishi Bhargava, VP products, Dan Sarel and VP engineering, Guy Rinat. All three are formerly of either Intel Security, McAfee or Check Point.
With offices in Israel, California the UK and Germany, Demisto joins other Israeli companies in the field and recently sold. Hexadite which was sold to Microsoft in June 2017, and Secdo, which was sold to Palo Alto itself only last April, for about $100 million. Demisto’s synergetic system for Secdo’s product.
The acquisition is expected to close during Palo Alto Networks fiscal third quarter.
Demisto has developed a market strategy that has attracted 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.
Palo Alto CEO Nikesh Arora said, “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.”
Demisto CEO Slavik Markovich said, “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.”