Zscaler Bolsters Cloud Security Arsenal with Avalor Acquisition

Zscaler, a prominent player in the cloud security domain headquartered in San Jose, California, has made waves in the cybersecurity realm with its recent acquisition of Avalor, a budding cybersecurity startup, just 26 months after its inception. The acquisition, reportedly valued at $310 million in cash and equity, marks a strategic move by Zscaler to fortify its platform with enhanced capabilities aimed at bolstering security posture and resilience.

In an official press release unveiling the acquisition, Zscaler founder and CEO Jay Chaudhry underscored the transformative potential of the deal, emphasizing the augmentation of Zscaler’s platform with an array of advanced functionalities. These include streamlined incident reporting, incident mitigation, asset discovery, data classification, and security policy generation, among others.

Chaudhry highlighted the pivotal role of AI in driving effective security measures, stressing the significance of leveraging comprehensive data sources across enterprises to enhance the efficacy of AI-driven security models. With access to Avalor’s innovative solutions, Zscaler aims to bolster its capabilities in identifying vulnerabilities, predicting threats, and preemptively mitigating breaches, thereby bolstering its position as a leading force in cloud security.

Avalor, co-founded by Raanan Raz and Kfir Tishbi, brings a wealth of expertise and innovative solutions to the table. Notably, Tishbi’s experience in leading the engineering team at Datorama, a marketing analytics firm acquired by Salesforce in 2018, underscores Avalor’s pedigree in navigating complex cybersecurity landscapes.

At the core of Avalor’s offerings lies its unique ability to serve as a centralized repository for cybersecurity assets, controls, identities, vulnerabilities, and other critical data points. This functionality empowers security teams to aggregate, normalize, de-duplicate, and track risk data seamlessly, from discovery to remediation.

Despite facing competition from similar startups such as Securiti and Dig Security, Avalor distinguishes itself through its unparalleled versatility in handling data from diverse sources and formats, coupled with its robust suite of vulnerability risk management and prioritization tools.

Prior to its acquisition by Zscaler, Avalor had garnered significant backing from investors, securing $30 million in funding from esteemed firms including TCV, Salesforce Ventures, Jibe Ventures, and Cyberstarts. Raanan Raz expressed optimism about the acquisition, citing Zscaler’s extensive resources and global reach as catalysts for Avalor’s continued growth and success.

With Avalor representing Zscaler’s third acquisition following Canonic and Trustdome, the company is poised to reinforce its position as a market leader in cloud security solutions. Founded in 2007, Zscaler boasts a robust workforce of approximately 7,000 employees and commands a market capitalization of approximately $30 billion, underscoring its stature as a formidable force in the cybersecurity landscape.