1. Zscaler, a cloud security company based in San Jose, California, has acquired cybersecurity startup Avalor for $310 million in cash and equity.
2. The acquisition will expand Zscaler’s platform with capabilities such as incident reporting, incident mitigation, asset discovery, and data classification.
3. Avalor, founded by Raanan Raz and Kfir Tishbi, provides cybersecurity asset management and vulnerability risk prioritization tools, and will operate independently as part of Zscaler’s team.
Zscaler, a cloud security company based in San Jose, California, has acquired cybersecurity startup Avalor 26 months after its founding for $310 million in cash and equity. This acquisition is aimed at expanding Zscaler’s platform with enhanced capabilities, including streamlined reporting of security incidents, incident mitigation, asset discovery, data classification, security policy generation, and more.
Avalor, co-founded by Raanan Raz and Kfir Tishbi, acts as a source of truth for cybersecurity assets, controls, identities, vulnerabilities, bugs, and other data points. It allows security teams to aggregate, normalize, de-duplicate, and track risk data from discovery to remediation. Avalor’s unique set of vulnerability risk management and prioritization tools sets it apart from other similar startups.
Before being acquired by Zscaler, Avalor had secured $30 million from investors, including TCV, Salesforce Ventures, Jibe Ventures, and Cyberstarts. The acquisition by Zscaler provides Avalor with access to a wide range of resources, including a large customer base, channel partners globally, and an established business network.
Zscaler, founded in 2007 and publicly listed in 2018, has made several acquisitions in the cybersecurity space, including Canonic and Trustdome. The recent acquisition of Avalor, along with other moves in the cybersecurity industry, could potentially help revive the slow-to-stagnant cyber M&A market. Last year saw a decline in M&A deals involving VC-backed cybersecurity startups, but 2024 has already seen several notable mergers and acquisitions by companies like Wiz, SentinelOne, and CrowdStrike.