Avalor links with Zscaler in a $350m deal to revolutionise cybersecurity


American cyber firm Zscaler is set to acquire Israeli startup Avalor for $350m, in a strategic move to enhance its cloud security offerings.

According to Calcalist, this acquisition marks Zscaler’s third in Israel, demonstrating the company’s ongoing commitment to expanding its technological capabilities and global footprint. Zscaler, known for its comprehensive cloud security solutions, has a significant market presence with a market cap of around $30bn and employs approximately 7,000 individuals. Its annual revenues stand at about $2bn. On the other hand, Avalor, emerging from stealth mode last April, has quickly made its mark in the cybersecurity space, with a focus on data solutions that bolster enterprise security.

The reason for this acquisition is twofold: to enhance Zscaler’s cloud security platform, Zero Trust Exchange, and to continue the development of Avalor’s innovative data solutions. The deal, valued at $350m, is a testament to the strategic importance of Avalor’s technology in augmenting Zscaler’s capabilities in processing large volumes of data and providing insights into threats.

Zscaler’s primary focus is on providing cloud-based security solutions that protect users from cyber threats, irrespective of their location.

The company’s Zero Trust Exchange platform is a cornerstone of its offerings, enabling secure access to internal and cloud-based applications. Avalor’s expertise lies in the creation of a Data Fabric for Security, a system that ingests, normalizes, and unifies data across various enterprise security and business systems. This technology offers actionable insights and analytics, enhancing operational efficiencies and decision-making processes.

The acquisition heralds a new chapter for both companies, with Avalor set to operate as an independent unit within Zscaler. This arrangement will not only facilitate the continued development of Avalor’s data solutions but also enable Zscaler to significantly enhance its cloud security platform. Furthermore, Avalor is expected to hire dozens of additional employees, underscoring the growth opportunities that this acquisition presents.

Additional information about the acquisition includes Avalor’s successful fundraising efforts, having raised a $25m Series A round led by TCV with participation from Salesforce Ventures. This followed a $5m Seed round, showcasing the industry’s confidence in Avalor’s technology and vision.

“This is a pivotal moment for Avalor and Zscaler,” Zscaler CEO Jay Chaudhry said. “By integrating Avalor’s cutting-edge data solutions with our Zero Trust Exchange, we are setting a new standard in enterprise security. This acquisition enables us to process vast amounts of data and deliver real-time, AI-driven analytics and decision-making capabilities to our customers.”

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