Santa Clara, California-based cybersecurity firm, Palo Alto Networks, announced today that it has entered into a definitive agreement to purchase 100% of the equity owned by Demisto. A leading cybersecurity company, with specialized solutions in the security orchestration, automation and response space, Demisto has reportedly developed a highly effective go-to-market strategy enabling it to grow its customer base by an average of 150 customers, approximately 25% of which belong to the Fortune 500 and include large organizations in healthcare, high technology, financial services and other industry verticals.
Palo Alto Networks will pay a total consideration of US$560mn for Demisto. The figure will be paid in a combination of cash and company stock and is subject to adjustment. Demisto will reportedly continue to execute its strategy of aggressive growth following the expected closure of the deal in Q3 2019.
Demisto will use its orchestration and automation technologies to improve and accelerate Palo Alto Networks Application Framework strategy and assist in the company’s development of immediate threat prevention strategies.
"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 CEO of Palo Alto Networks.
Demisto’s innovative automated playbooks have been used previously to help reduce cybersecurity alerts that require a human review by 95%, sorting through and addressing minor threats using AI and machine learning, allowing humans to focus on the most complex issues facing a system.
Demisto's products will continue to be available to customers and partners after the transaction closes. Demisto founders, Slavik Markovich, Rishi Bhargava, Dan Sarel and Guy Rinat, will join Palo Alto Networks.
Slavik Markovich, CEO of Demisto said: "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.”