Palo Alto Networks has agreed to acquire Zingbox, an IoT security company, for a total purchase price of $75 million in cash.
Investors of Zingbox include Dell Technologies Capital, Triventures, GSR Ventures and Start Stanford-StartX Fund.
The proposed acquisition is expected to close during Palo Alto Networks fiscal first quarter of 2020.
Zingbox’s cloud-based service and advanced AI and machine learning technology for device and threat identification capabilities will accelerate Palo Alto Networks delivery of IoT security through its Next-Generation Firewall and Cortex platforms.
The acquisition of Zingbox will enable Palo Alto Networks to provide a subscription for its Next-Generation Firewall and Cortex platforms that gives customers the ability to gain control, visibility, and security of their connected devices at scale.
The company’s co-founders — CEO Xu Zou, CTO May Wang, and VP Engineering Jianlin Zeng — will join Palo Alto Networks.
Palo Alto competes in a market dominated by traditional firewall provider Cisco Systems, Check Point Software Technologies and Juniper Networks.
Earlier this year, Palo Alto bought U.S.-Israeli information security firm Demisto as well as Israel-based cybersecurity firms Twistlock and PureSec. Last October, the company acquired U.S-based cloud security company Redlock.
Palo Alto Networks said its revenue grew 22 percent to $805.8 million in its fiscal fourth quarter and fiscal year 2019.
Palo Alto Networks said it expects to grow sales at a double-digit pace over the next three years. Palo Alto forecast fiscal 2022 sales would hit $5 billion.
The company said the popularity of its cloud security tool Prisma Access boosted confidence it can achieve a 20 percent compounded annual growth rate for billings and revenue over the three-year period.