Palo Alto Networks to buy Expanse in a $800 mn deal

Cybersecurity company Palo Alto Networks will acquire attack surface management vendor Expanse in a $800 million deal.
Palo Alto Networks CEO Nikesh Arora
Palo Alto Networks will acquire Expanse for a total purchase price of approximately $670 million to be paid in cash and stock and approximately $130 million in replacement equity awards.

Tim Junio is the CEO and co-founder of Expanse. Founded in 2012, Expanse is headquartered in San Francisco.

Expanse on April 9, 2019 announced that it has raised $70 million in Series C funding led by TPG Growth. Expanse also received investments from Arianna Huffington, Peter Thiel, Egon Durban, Taylor Glover, Sam Palmisano, as well as return investments from NEA, IVP, Founders Fund, and MSD Capital.

From September 2019 to September 2020, Expanse doubled revenues from the previous year and saw the total value of customer wins exceed $100 million.

Expanse has customers across government, Fortune 500 companies, and internet service providers (ISP), including CVS/Aetna, PayPal, Capital One, Allergan, Hudson’s Bay Company, the US Army, US Navy, US Air Force, and the Departments of Defense, Energy, and State.

Nikesh Arora, chairman and CEO of Palo Alto Networks, said: “By integrating Expanse’s attack surface management capabilities into Cortex, we will be able to offer the first solution that combines the outside view of an organisation’s attack surface with an inside view to proactively address all security threats.”

San Francisco-based Expanse’s internet collection and attribution platform monitors the global internet to map exposed and untracked assets that comprise customers’ attack surfaces, evaluate and prioritize risk, and provide mitigation.

Expanse’s data provides Chief Information Security Officers (CISOs) with a view of the enterprise from the outside, representing the view an attacker sees as they probe for points of weakness.

The Expanse platform will significantly enrich Palo Alto Networks’ Cortex product suite and create the ability to stitch together external, internal and threat data to provide organisations with an integrated view of the enterprise.

Palo Alto Networks earlier said its revenue grew 18 percent to $950.4 million for its fiscal fourth quarter and fiscal year 2020, ended July 31, 2020.

Palo Alto Networks expects total billings in the range of $1.190 billion to $1.210 billion, representing  growth of between 13 percent and 14 percent for the fiscal first quarter 2021.

Palo Alto Networks expects total revenue in the range of $915 million to $925 million, representing growth of between 19 percent and 20 percent for the fiscal first quarter 2021.

The acquisition of Expanse is expected to close during Palo Alto Networks fiscal second quarter.