Zscaler Enhances Security Portfolio with Avalor Acquisition

Zscaler Security Portfolio with Avalor Acquisition | CyberPro Magazine


Expanding Zscaler Security Capabilities

Zscaler Security, the renowned cloud security company headquartered in San Jose, California, has recently acquired Avalor, a promising cybersecurity startup, merely 26 months after its inception. The deal, reportedly valued at $310 million in cash and equity, marks a significant step for Zscaler in fortifying its security platform.

Jay Chaudhry, the founder and CEO of Zscaler, expressed enthusiasm about the acquisition, emphasizing its potential to enhance Zscaler’s offerings. The integration of Avalor’s technologies into Zscaler’s platform promises streamlined reporting of security incidents, incident mitigation, asset discovery, data classification, and security policy generation. Chaudhry highlighted the importance of enriched data sources in optimizing security-specific AI models, underscoring Zscaler Security’s position as the operator of the world’s largest security cloud, poised to leverage such models effectively.

Avalor’s Unique Approach to Cybersecurity

Founded by Raanan Raz and Kfir Tishbi, Avalor stands out in the cybersecurity landscape due to its innovative approach. The startup serves as a comprehensive repository for cybersecurity assets, controls, identities, vulnerabilities, and other critical data points. What distinguishes Avalor from its counterparts is its unparalleled ability to handle data from diverse sources in varying formats, coupled with its proprietary vulnerability risk management and prioritization tools.

Avalor’s co-founder, Kfir Tishbi, brings valuable experience from his tenure leading the engineering team at Datorama, a marketing analytics company acquired by Salesforce in 2018. With a proven track record in developing data-driven solutions, Tishbi’s expertise complements Avalor’s mission to revolutionize cybersecurity.

Impact and Future Prospects

Before its acquisition by Zscaler security, Avalor had secured $30 million from prominent investors, including TCV, Salesforce Ventures, Jibe Ventures, and Cyberstarts. Raanan Raz, co-founder of Avalor, expressed optimism about the partnership with Zscaler, foreseeing accelerated growth opportunities. With Zscaler’s vast resources, expansive customer base, and established market presence, Avalor anticipates scaling its operations significantly.

This acquisition marks Zscaler’s third strategic move in bolstering its security portfolio, following the acquisitions of Canonic and Trustdome. Established in 2007, Zscaler, led by Chaudhry and K. Kailash, has grown into a global powerhouse in cloud security, boasting a workforce of approximately 7,000 employees and a market capitalization of around $30 billion since going public in March 2018.

The cybersecurity sector is witnessing increased merger and acquisition activity, with notable moves by industry players like Wiz, SentinelOne, and CrowdStrike. Analysts suggest that these acquisitions could reinvigorate a previously stagnant market, as evidenced by a decline in M&A deals involving VC-backed cybersecurity startups in recent years. Nonetheless, with 18 cybersecurity-related mergers and acquisitions recorded in 2024 thus far, the sector appears to be on an upward trajectory, driven by evolving threats and the demand for robust security solutions.

With Zscaler’s acquisition of Avalor, the cybersecurity landscape is poised for further innovation and consolidation, as companies strive to stay ahead in the ever-evolving cybersecurity arms race. As the digital ecosystem continues to expand, the collaboration between Zscaler and Avalor signals a concerted effort to bolster defenses and safeguard against emerging threats in an increasingly interconnected world.

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