Cyber security company Palo Alto Networks would buy U.S.-Israeli information security firm Demisto for $560 million in cash and stock.
Demisto, founded in 2015 by four McAfee executives, develops and markets automation tools for information security management, including a chatbot that assists in handling tasks.
Demisto last October raised $43 million in an investment round led by Greylock Partners, bringing total equity funding to $69 million. Accel Partners, ClearSky Security, Slack Technologies, Wipro Ventures, Secure Octane and Cerca Partners are also investors of Demisto.
Demisto’s products will continue to be available to customers and partners after the deal closes and founders Slavik Markovich, Rishi Bhargava, Dan Sarel and Guy Rinat will join Palo Alto.
Demisto has attracted more than 150 customers including top companies in the Fortune 500 list and include large organizations in healthcare, high technology, financial services and other industry verticals.
Demisto — headed by CEO Slavik Markovich — plans to execute the growth plans and leverage Palo Alto Networks distribution to achieve its goals. Demisto did not reveal its revenue forecast.
“Coupled with our Application Framework, Demisto will help us strengthen our commitment to security teams by delivering a platform that provides higher levels of integration, automation, and innovation to prevent successful cyber attacks,” said Arora, chairman and CEO of Palo Alto Networks.