Palo Alto Networks has been on a buying spree for the past two years, and today he added to his loot, announcing a deal to acquire Scope for $ 800 million in cash and stock. The deal is for $ 670 million in cash and stock and an additional $ 130 million in shares to Expanse employees.
Expanse provides a service to help businesses understand and protect their attack surface, where they might be most vulnerable to attack. It works by giving the security team an overview of the company’s security profile for an attacker trying to access it.
The plan is to integrate Expanse with Palo Alto’s Cortex suite, a set of AI-driven tools designed to automatically detect and prevent attacks. Expanse is expected to provide Palo Alto with a very valuable data set to help fuel the AI models.
“By integrating Expanse’s attack surface management capabilities into Cortex post-close, we will be able to offer the first solution that combines the exterior view of an organization’s attack surface with a view interior to proactively respond to all security threats, ”Palo Alto Networks Chairman and CEO Nikesh Arora said in a report.
Expanse sees the acquisition as a way to accelerate the business roadmap by utilizing the resources of a larger company like Palo Alto, a typical argument for companies being acquired. “Joining forces with Palo Alto Networks will allow us to achieve our most important business goals years ahead of schedule. During conversations with management at Palo Alto Networks, we shared optimism that the right mix of technology and people can solve many cybersecurity challenges that, to date, seemed intractable, ”the founders wrote. startup. in a blog post announcement of the agreement.
Two co-founders, Dr Tim Junio and Dr Matt Kraning, will join Palo Alto under the terms of the deal, which is expected to be finalized in Palo Alto’s fiscal second quarter, assuming it passes control. regulatory.
Today’s acquisition is Palo Alto’s third in 2020 and the 10th since 2018. Palo Alto stock rose 2.15% at the start of trading.