Palo Alto Networks buys Twistlock and PureSec

Palo Alto Networks is set to acquire Israel-based cybersecurity firms Twistlock for $410 million in cash and PureSec for an undisclosed amount.
Palo Alto Networks CEO Nikesh AroraTwistlock is a provider of container security, and PureSec is a provider of serverless security.

The company in March completed its acquisition of U.S.-Israeli information security firm Demisto for $560 million in cash and stock. Demisto is a leading security company in the security orchestration, automation and response (SOAR) space with more than 150 clients worldwide.

Palo Alto Networks aims to add Twistlock and PureSec to the Prisma cloud security suite in order to further enhance revenue.

Palo Alto Networks will pay $410 million in cash to acquire Twistlock. Twistlock combines vulnerability management, compliance, and runtime defense for cloud-native applications and workloads. Twistlock serves more than 290 customers, with more than a quarter on the Fortune 100 list. Twistlock co-founders, Ben Bernstein and Dima Stopel, will join Palo Alto Networks.

Prisma, used by 9,000 customers worldwide, enable a secure cloud by providing visibility across the entire cloud environment while consistently governing access, protecting data, and securing applications regardless of location. PureSec co-founders, Shaked Zin, Ory Segal, and Avi Shulman, will join Palo Alto Networks.

“Our acquisition of these companies will enhance our ability to be the cybersecurity partner of choice for our customers, while expanding our capabilities and strengthening our Prisma cloud security strategy,” Nikesh Arora, chairman and CEO of Palo Alto Networks, said in a statement on Wednesday.

Palo Alto Networks announced results for its fiscal third quarter 2019, ended April 30, 2019.

Palo Alto Networks’ revenue grew 28 percent to $726.6 million in the fiscal third quarter 2019.

Palo Alto’s services revenue, which includes revenue from contract-based subscriptions for its security offerings, surged 28 percent to $448.2 million in the quarter.

Palo Alto Networks reported net loss of $20.2 million, or $0.21 per diluted share, compared with net loss of $40.4 million, or $0.44 per diluted share, for the fiscal third quarter 2018.

Palo Alto forecast current-quarter revenue of $795 million to $805 million. The company forecast adjusted fourth-quarter profit in the range of $1.41 per share to $1.42 per share.

Rajani Baburajan