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.
About Acuity Advisors
We know technology – that’s why we’re the industry’s trusted M&A advisor. Our partners are senior players in tech and M&A: skilled at getting to the heart of a technology business, understanding what will attract buyers, and building long-lasting relationships. We have an unrivalled understanding of the industry’s complexities and personalities – our track record and client feedback are compelling evidence of that. We’re an international firm – most of our deals are cross-border, from offices in London, Munich, Shanghai and Silicon Valley – but we’re grounded in our approach. We move quickly when it’s needed, and we’re around for the long haul when patience is a virtue. We’ve maintained a very high success rate across hundreds of deals while keeping our focus on doing what’s right for our clients. From first meeting to successful exit, we earn the trust that clients and investors put in us. Learn more here.
© 2018 Acuity Advisors LLP
A conversation is never wasted. We’re confident that we can give you all the help you need, but we’ll tell you if we think there’s a better option for you.Get in Touch