Priya Patel
TLDR:
US cyber giant Zscaler acquired Israeli startup Avalor for $350 million. Avalor will operate independently within Zscaler to enhance its data solutions for cloud security. This marks Zscaler’s third acquisition in Israel.
Zscaler, a leading American cybersecurity firm, completed the acquisition of Avalor, an Israeli startup, for $350 million. This acquisition marks Zscaler’s third purchase in Israel, following acquisitions of Canonic and Trustdome. Avalor, which raised $25 million in Series A funding last year, will operate as an independent unit within Zscaler to develop data solutions that enhance Zscaler’s cloud security platform.
Avalor, co-founded by Raanan Raz and Kfir Tishbi, emerged from stealth mode in April after securing significant funding rounds. With approximately 80 employees, Avalor is known for its Data Fabric for Security, which ingests, normalizes, and harmonizes data across enterprise security and business systems to provide actionable insights and operational efficiencies.
After the acquisition, Avalor will focus on advancing its data solutions to strengthen Zscaler’s Zero Trust Exchange platform. This integration aims to improve AI-driven analytics and decision-making in real-time without the complexities of data aggregation.
Zscaler anticipates significant returns for investors like Cyberstarts, with the potential for returns exceeding 10x on their initial investment in Avalor. Avalor’s expertise in data analysis and security aligns well with Zscaler’s goals, making it the largest acquisition in Zscaler’s history.
Jay Chaudhry, CEO of Zscaler, highlighted the importance of data in AI and security, emphasizing that Avalor’s technology will enhance the company’s ability to identify vulnerabilities and prevent breaches effectively.
