Palo Alto Networks has inked an $800 million deal to acquire a security start-up Expanse. Expanse is a well-funded start-up that helps businesses to identify internal systems exposed to the internet.
The agreement was announced today. The $800 deal breaks down to $670M in stock and cash and an additional $130M in replacement equity awards. For the investors, it is a good return on the $136M, or so they had bet on Expanse.
Why it is the right decision for Palo Alto Networks to buy Expanse
Typically, only users inside the corporate network have access to sensitive information technology assets such as databases. But, technical hitches such as configuration errors sometimes make the systems vulnerable to outside connection requests. This enables hackers to discover them through the public web and execute cyberattacks.
This is where Expanse comes in. The software platform scans the internet for vulnerable systems and sends a notification to cybersecurity teams if it identifies their organization’s assets.
Expanse also offers features intended to help cybersecurity teams act on the information. The platform classifies exposed systems it identifies based on the severity of the danger they pose.
Palo Alto Networks integration with Expanse
Expanse’s technology will be essential in enhancing Palo Alto’s Cortex line of threat detection products. The information that Expanse collects about prone systems and traffic to those systems will enable Palo Alto to provide customers with a more detailed picture of the magnitude of the risks.
The technology that Palo Alto Networks is getting by acquiring Expanse is field-proven. According to Expanse, its platform is used by Fortune 500 companies like Accenture and several branches of the United States government.
Palo Alto Networks aims to finalize the acquisition by Jan. 31, 2021.