Zscaler, the American cybersecurity giant, will acquire Israeli startup Avalor for $350 million. This marks Zscaler’s third acquisition in Israel, having already purchased Canonic and Trustdome for $50 million and $40 million respectively. Zscaler, worth approximately $30 billion in market cap, employs about 7,000 people and generates annual revenues of around $2 billion.
Avalor was established last April, securing a series A round of $25 million led by TCV and supported by Salesforce Ventures. It also raised $5 million in a seed round led by Cyberstarts, in collaboration with Jibe Ventures and industry angels. The startup, based in Ramat Gan, Israel, employs 80 people. It was co-founded by Raanan Raz and Kfir Tishbi, both skilled in high-performance computing and data solutions.
The startup is set to operate independently within Zscaler, continuing to develop its data solutions which are designed to complement Zscaler’s cloud security platform, the Zero Trust Exchange. The integration will enable Zero Trust Exchange to process hefty volumes of data and provide valuable insights into potential threats.
Upon completion of the acquisition, Avalor is expected to expand its workforce by hiring dozens of additional employees. Avalor’s investors, particularly Cyberstarts, expect that the acquisition will yield a return of at least 10x on their original investment.
Avalor’s Data Fabric for Security is designed to intake, normalize, and unify data across enterprise security and business systems. This provides actionable insights, analytics, and operational efficiencies. By integrating this with Zscaler’s Zero Trust Exchange platform, enterprises can significantly enhance and automate AI-driven analytics and decision-making in real-time.
Raanan Raz, CEO of Avalor, highlighted that the company had met all its business goals and had the potential to raise significant additional funds. However, they chose to move forward with Zscaler due to their strong synergy. The Avalor CEO added that this is Zscaler’s largest acquisition to date.
Source: Zscaler acquiring cyber startup Avalor for $350 million.
