Palo Alto Networks will pay $560 million to acquire Demisto, a security orchestration, automation and response (SOAR) provider.
Demisto’s technologies will push Palo Alto Networks Application Framework strategy and will provide another step toward the company’s goal to deliver threat prevention and response.
Demisto’s automated playbooks help reduce alerts that require human review by as much as 95 percent, allowing security teams to focus on complex threats. The approach will bring Palo Alto Networks closer to using AI and machine learning to help further automate parts of users’ security operations.
Demisto has developed a highly effective go-to-market strategy that has enabled it to attract 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.
“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 chief executive of Palo Alto Networks.
“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,” said Slavik Markovich, Demisto chief executive. “…We have found a like-minded team that shares our conviction that the future of security is all about automation and AI.”
Demisto’s products will continue to be available to customers and partners after the transaction closes.
The deal should close during Palo Alto Networks’ fiscal third quarter, which ends in April.