Cyber security company Palo Alto Networks Inc. announced on Tuesday it has an agreement to acquire CloudGenix Inc. for $420 million in cash deal. CloudGenix competes with Cisco, Fortinet and VMware in the SD-WAN space, targeting large organizations that need to manage network traffic at branch offices.
Palo Alto Networks plans to use the CloudGenix’s cloud-managed SD-WAN products to accelerate the use of its Prisma Access, its secure access service edge (SASE) platform by remote business branches and retail stores. The acquisition deal is expected to close in fourth quarter that ends in July.
“As the enterprise becomes more distributed, customers want agile security solutions that just work, and that applies to both security and networking. Upon the close of the transaction, the combined platform will provide customers with a complete SASE offering that is best-in-class, easy to deploy, cloud-managed, and delivered as a service”, Nikesh Arora, CEO Palo Alto Networks said in the press release.
Palo Alto’s Prisma offering has been a major focus since its launch. With Prisma Access, organizations can secure access to the cloud for branch offices and remote workforce worldwide with a scalable, cloud-native architecture. It leverage Google Cloud Platform and features a streamlined cloud management UI for rapid onboarding of branches and users. It also features capabilities specifically designed for service providers to enable the rapid provisioning of secure outbound internet connectivity for their customers.
CloudGenix was founded in year 2013 and has raised $99 million in four rounds of funding, including a $65 million Series C round that closed in April 2019. The company has more than 250 customers across the retail, manufacturing, healthcare, finance, banking, tech and hospitality verticals including Fortune 1000 companies.
Co-founder and CEO Kumar Ramachandran has worked in networking giant Cisco for 11 years as head of product development in its wide area networking business, before launching CloudGenix in 2013.
CloudGenix offers a software-defined (SD-WAN) that helps enterprise stay secure by setting security policies to enforce compliance with company security protocols across branches. This is very useful for companies which have branch offices or a distributed workforce.
Past Acquisition by Palo Alto Networks
The acquisition is the ninth by Palo Alto Networks since it bought Pleasanton-based Evident.io Inc. for $300 million in March 2018. Other big deals include the $150 million buy of Aporeto, $560 million purchase of Demisto Inc. last February and the $410 million acquisition of Twistlock Ltd. last May.
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