Palo Alto Networks acquires Cider Security for $300 million in a cash and stocks

Palo Alto Networks acquires Cider Security for $300 million in a cash and stock deal. The transaction amount also includes a retention package for employees that will ensure that they remain with the company after the acquisition.
According to sources involved in the transaction, it will be carried out in a combination of shares and cash, with the cash component amounting to $200 million, and $100 million in shares. This is Palo Alto's eighth acquisition in Israel, and the most prominent of them is the acquisition of the Israeli startup Demisto - in a huge deal of 560 million dollars in cash and shares in 2019. Palo Alto, founded by Nir Tsuk, is currently traded on Nasdaq at a value of 47 billion dollars.
Sider Security has developed an operating system for the world of application security. In March of this year, it announced fundraising of 32 million dollars, and in total raised 38 million dollars. The company was founded at the end of 2020 by Guy Fletcher and Daniel Kribelevich, and the Tiger Global and Gilolit funds invested in it, which invested both through the seed fund and the growth fund.
The current deal comes after the purchase deal of the startup Apiiro fell through a few weeks ago. According to estimates, the deal was supposed to be in the hundreds of millions of dollars, and it seems that there were those in Palo Alto who thought the price tag was too high and chose to purchase Sider Security instead.
Palo Alto refused to comment but is expected to report on the transaction after the end of trading, as part of the financial reports.

It is not the first acquisition of Palo Alto Networks in Israel. The global cybersecurity leader has entered into a definitive agreement to acquire Demisto, a leading security company in the security orchestration, automation, and response (SOAR) space. Under the terms of the agreement, Palo Alto Networks will acquire Demisto for a total purchase price of $ 560 million, subject to adjustment, to be paid in cash and stock. The proposed acquisition is expected to close during Palo Alto Networks fiscal third quarter, subject to the satisfaction of regulatory approvals and other customary closing conditions.

The addition of Demisto's orchestration and automation technologies will accelerate Palo Alto Networks Application Framework strategy and serve as a critical step forward in the company's aim to deliver immediate threat prevention and response for security teams. Demisto's automated playbooks have helped reduce alerts that require human review by as much as 95 percent, allowing security teams to focus on the most complex threats. This well-developed approach will bring Palo Alto Networks closer to using AI and machine learning to help further automate significant parts of the company's customers' 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.
"We are welcomed 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. " , Nikesh Arora, chairman and CEO 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. 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. " Slavik Markovich, CEO of Demisto
Google is acquiring Israeli start-up Alooma, the technology giant announced today. The purchase price was not disclosed but according to estimates in the purchase market was made in the amount of 100-150 million dollars. According to IVC, Aluma raised $ 15 million during its years of existence, so it is a nice exit for investors.
Aluma was founded in 2014 by CEO Yoni Broide, who spent many years in the Prime Minister's Office, Rami Amar, an engineer who served in the technological unit of the Intelligence Corps, and Yair Weinberger, former vice president of development for ConvertMedia. The three founders are graduates of the Talpiot program in the IDF, and the system they developed helps the organization connect to the sources of information in real time from one place in the cloud.
Investors include Lightspeed, Sequoia and Vintage. Another investor in the company is Ariel Meislos, the developer of Anovit, which was sold to Apple. On the basis of Anobit, Apple's development center was established in Israel.
Google's cloud service is trying to compete with AWS, Amazon's cloud service, which controls the market. Both companies, like Microsoft, are trying to offer solutions to customers to persuade them to join their cloud platform. Some of the solutions are developers themselves, but additional solutions are purchased. For example, Amazon recently acquired Israeli start-up Cloud Andor for $ 250 million.