Security platforms provider Palo Alto Networks has agreed to acquire compliance software automation outfit Evident.io in a $300 million cash deal.
The rationale behind the deal is to boost Palo Alto’s application programming interface-based security capabilities. The addition of Evident.io’s technology will be helpful for ensuring security and compliance for the cloud deployments of Palo Alto’s customers.
“We believe enterprises will become even more cloud-centric in the future and require prevention methods that have been designed for the cloud,” Mark McLaughlin, chairman and CEO of Palo Alto Networks, said in a statement.
Backed by Bain Capital Ventures, True Ventures, Venrock and Google Ventures, Evident.io was established on the premise of creating secure public cloud infrastructure and services without innovation being hampered in the process. California-based Evident.io also has ties to US government agencies and funding from the CIA has ensured the company’s product roadmap is in close alignment with that of the intelligence community.
The acquisition comes amidst a growing trend of security companies and data centre providers to buy cloud security resources. Earlier in March, CyberArk acquired cloud security firm Vaultive and late last year McAfee made its first acquisition after spinning out from Intel by bringing onboard Skyhigh Networks in a $400 million deal.
Problems surrounding compliance and security in the cloud continue to create headlines. As customers will be looking especially to their security providers to solve these challenges, we expect this M&A trend to continue.