Palo Alto Networks Pays $560 Million for Information Security Automation Firm Demisto

Palo Alto Networks Inc. announced Tuesday it has agreed to acquire Israeli information security firm Demisto Inc. for $560 million in cash and stock. The deal is now subject to regulatory approvals and is set to close in the upcoming months, Palo Alto said. Calcalist first reported Palo Alto was negotiating the acquisition earlier this month.

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Headquartered in Cupertino, California, Demisto develops and markets automation tools for information security management, including a chatbot that assists security analysts with various tasks.

Demisto was founded in 2015 by four former McAfee executives—Dan Sarel, Slavik Markovich, Guy Rinat, and Rishi Bhargava. In October, Demisto completed a $43 million series C funding round led by Greylock Partners, bringing its total equity funding to $69 million. The company has also received backing from Accel Partners, ClearSky Security, Slack Technologies, Wipro Ventures, Secure Octane, and Cerca Partners.

Founded by Israel-born entrepreneur Nir Zuk, formerly an executive at Check Point Software Technologies Ltd., Palo Alto acquired three Israeli companies to date: Cyvera Ltd. in 2014, Lightcyber Ltd in 2017, and Cyber Secdo Ltd., also known as Secdo, in 2018. The company reported $656 million in total revenues for the first fiscal quarter of 2019.