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Palo Alto Networks to Buy Demisto for $560 Million

Fourth Palo Alto Cyber Acquisition in Israel Since 2014

Palo Alto Networks announced on 19 February it has agreed to buy Israeli cyber firm Demisto for $560 million in cash and stock.

Founded in 2015, Demisto develops enterprise security solutions combining incident management, machine learning and interactive investigation and has offices in Tel Aviv and California. The latter function, according to the firm’s website, allows for collaborative investigation of complex incidents that defy standard solutions.

The Israeli firm’s technologies will accelerate Palo Alto’s strategy “and serve as a critical step forward in the company’s aim to deliver immediate threat prevention and response for security teams,” the Santa Clara, CA-based buyer stated. The automated tools Demisto has developed mean that up to 95% of alerts can be dealt with without requiring human review, which in turn means that security teams can focus on the most complex -and often most urgent – 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,” the statement reads.

Demisto’s customer base includes Fortune 500 companies, to whom its services will continue to be available as Palo Alto integrates the company, subject to the necessary approvals and closing conditions. “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,” commented Palo Alto Networks Chairman and CEO, Nikesh Arora.

Palo Alto has acquired three other Israeli cyber security companies in recent years, according to the Calcalist website: Cyvera in 2014; Lightcyber in 2017; and Cyber Secdo last year.

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