Palo Alto has splashed out $560m on Israeli security start-up Demisto to boost its orchestration and automation portfolio.
Demisto was founded in 2015 and specialises in security orchestration, automation and response (SOAR).
It raised $69m in funding prior to its acquisition, the most recent of which was $43m in a Series C round last October.
It is the fourth purchase by Palo Alto in the past 12 months, after previously acquiring cloud threat defence firm RedLock, end-point protection provider Secdo and cloud compliance specialist evident.io.
The network security vendor claims that the addition of Demisto will be "critical" in its aim to deliver immediate threat prevention and response to security teams, as well as bringing it closer to using artificial intelligence (AI) and machine learning to automate parts of customers' security operations.
Speaking to investors on a call about the acquisition, Palo Alto CEO Nikesh Arora said the purchase of Demisto bolsters the vendor's solution set for customers.
"Demisto adds to a series of investments we've made in the last 12 months designed to strengthen our ability to offer integration - not consolidation - to our customer," he said on the call, transcribed by Seeking Alpha.
"At this point, I am comfortable that we have all the elements to forge ahead in our plans to provide industry-leading solutions to our customers across their traditional infrastructure, help them secure their journey to the cloud, and also change the paradigm of how security is offered with a more data-centric approach that relies on industry-leading AI and machine learning."
Arora confirmed that Demisto tech will continue to be sold through the channel.
When asked by one investor about whether recent channel model changes around certain products would apply to its Demisto offering, Arora assured him it would not, explaining that such changes were to accommodate its acquisition of RedLock.
He claimed this was due to a "natural go-to-market motion" with cloud providers.
"When a cloud provider signs up for a programme with a customer, they take them direct," he explained. "And we've noticed that we have to attach our sale of RedLock to that sale.
"We've made a change or adaptation to our channel model specifically for that product category, because we need to make sure this channel gets compensated, yet we need to be able to follow the motion of the cloud providers out there.
"Demisto is a channel play, it's a partner play, it's an MSSP play. And we anticipate getting more engaged and involved with our MSSP partners and system integrators (SI) to be able to make this sale happen in the market."
Demisto will be kept as a separate entity within the Palo Alto group and its CEO Slavik Markovich will continue to head the business.
Demisto has been vendor-neutral so far, and Arora said it would remain this way, stating that a multi-vendor approach to solving customer problems is "mandatory".
"We intend to stick to the notion of keeping them as a multi-vendor, unbiased solution," he said.
"We expect that we need to be focused from a customer's perspective on a solution that works for them."
Arora also stated that no further M&A is on the horizon for Palo Alto for the foreseeable future.
"I don't see anything in the near future that we're missing from a portfolio perspective," he told investors.
"I don't feel the need to go out and buy market share in any particular product category, because that does not fit into the theme of integration."
Martin Courtney, principal analyst at TechMarketView, said the four acquisitions will be significant contributors to Palo Alto's revenue.
"Demisto is a crucial advantage in a market where cyber expertise remains difficult and expensive to come by, leaving some enterprise IT departments with little option but to lease security analytics services from managed security service providers," he said.
The acquisition is expected to close during Palo Alto's fiscal third quarter.
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