Palo Alto Networks Buys Endpoint Security Startup Secdo

Linda HardestyApril 11, 2018
4:24 pm PT

Palo Alto Networks is buying Israel-based Secdo, a security company that does endpoint detection and response. These capabilities will be folded into Palo Alto Networks’ Traps endpoint protection product and its new Application Framework, a comprehensive security platform.

The parties did not disclose the purchase price for Secdo, but some Israeli news outlets, including Haaretz, are reporting it is between $90 million and $100 million. The startup had raised about $10 million in funding, according to Crunchbase.

Mark McLaughlin, CEO of Palo Alto Networks, said in a statement that Secdo’s technology will help the company “detect and prevent successful cyberattacks across the cloud, endpoint, and network.”

Secdo’s approach to data collection and visualization goes beyond traditional endpoint detection methods, which only collect general event data, according to Palo Alto Networks’ statement. The technology speeds incident response time through automation.

The acquisition of Secdo is expected to close during Palo Alto Networks’s current quarter.

The California company has acquired other Israeli security startups in the past. About a year ago, it bought LightCyber for $105 million. And in 2014 it bought Cyvera for $200 million.

Just last month, Palo Alto Networks announced it was buying Evident.io for $300 million. Evident.io is a California-based startup that does security for public cloud infrastructure.

For its most recent earnings report, Palo Alto Networks exceeded revenue expectations. The company reported $542 million in revenue, a 28 percent year-over-year increase. And it reported non-GAAP net income of $91.5 million in the quarter, or $0.97 per share. The company’s President Mark Anderson said that its relationships with the large public cloud vendors was helping to propel the company.