Palo Alto Networks stumps up $75m for IoT start-up

Security vendor plans to integrate IoT capabilities into its Firewall and Cortex platforms

Palo Alto has inked a definitive agreement to acquire Internet of Things (IoT) start-up Zingbox for $75m (£60.8m).

San Francisco-based Zingbox was established in 2014 and had raised $23.5m in funding rounds prior to its purchase by the security vendor.

It is the second acquisition of 2019 for the vendor after it splashed out $560m for Israeli start-up Demisto.

Palo Alto stated that it will incorporate Zingbox's artificial intelligence (AI) and machine-learning capabilities into its own Firewall and Cortex platforms.

The cybersecurity vendor claimed that most connected devices in enterprises are unmanaged and pose security risks; focused more on profiling and inventory rather than stopping and detecting attacks.

"The proliferation of IoT devices in enterprises has left customers facing an enormous gap in protection against cybersecurity attacks," said Nikesh Arora, CEO of Palo Alto Networks.

"With the proposed acquisition of Zingbox, we will provide a first-of-its-kind subscription for our next-generation Firewall and Cortex platforms that gives customers the ability to gain control, visibility and security of their connected devices at scale."

The $75m fee will be paid in cash and the deal is expected to close during Palo Alto's fiscal first quarter of 2020.

Zingbox's founders Xu Zou, May Wang, and Jianlin Zeng will join Palo Alto.

Zou, CEO of Zingbox, added: "Our vision has always been to ensure that organisations realise the full benefits of IoT devices without sacrificing security.

"By joining forces with Palo Alto Networks, we will be able to secure connected devices at scale to help organisations embrace digital transformation."

The news was announced during Palo Alto's Q4 results, which saw overall revenue rise 22 per cent year on year to $805.8m.