Zscaler Acquire Israeli AI Firm for $310 Million to Bolster Security Offerings


  • Zscaler, a cloud security giant, bolstered its defences by acquiring Israeli AI startup Avalor for $310 million.
  • Avalor’s AI expertise in data analysis strengthens Zscaler’s security offerings while Avalor gains resources to reach its full potential.
  • The deal reflects a growing trend in cybersecurity, with AI playing a key role in combating increasingly sophisticated threats.

Zscaler, a leading company in cloud security, on Thursday announced the purchase of Avalor, an Israeli startup known for its artificial intelligence data analysis.

The deal, reportedly valued at $310 million, strengthens Zscaler’s security offerings with cutting-edge AI technology.

Zscaler Says It Will “Do Security Far Better” With AI

Avalor, founded in 2021, uses AI to scan massive amounts of data to uncover security threats. This approach impressed Zscaler CEO Jay Chaudhry, who praised Avalor’s “innovative technology” and its potential to help them “do security far better than the way we are doing it.”

The acquisition deal represents a significant growth opportunity for Avalon. Zscaler’s vast resources and data will allow Avalor’s AI to reach its full potential. 

Avalor co-founder Raanan Raz said the companies are a “match made in heaven,” with Zscaler’s data fueling Avalor’s powerful AI analysis. Instead of pursuing independent growth, Avalor saw Zscaler as the key to unlocking its full potential. Raz emphasises the consortium, stating, “one plus one equals eleven” in this case.

Zscaler said is still actively seeking the acquisition of new security solutions.

The acquisition of Avalor comes amid a recent surge in Israeli security startup purchases. Major players like Palo Alto Networks and Crowdstrike have also made multiple acquisitions in Israel. 

The trend is likely fueled by the growing need for robust cybersecurity solutions in the face of international conflicts. Avihai Michaeli, a partner at PwC Israel, acknowledges the unfortunate reality: “War is bad, but it’s good for the cyber business.”

Why Cybersecurity Firms Are Tapping AI

The digital world is constantly evolving, and so are the threats that lurk within it. Hackers are becoming more sophisticated, employing complex tactics to steal data and disrupt operations. However, AI is becoming an added advantage for cybersecurity companies to mitigate threats – basically, fight AI-enabled threats with AI. 

Over the past few months, there has been a growing trend of companies leveraging AI’s analytical prowess, predictive power, and adaptability companies to significantly improve their cybersecurity posture.

Earlier this month, leading internet security provider Cloudflare launched its AI model that provides personalized security strategies for organizations by analysing their unique traffic patterns to identify and mitigate specific threats they face, Cryptopolitan reported.  

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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