UPDATED 21:43 EDT / MARCH 14 2018


Palo Alto Networks to acquire Evident.io in $300M all-cash deal

Security platform provider Palo Alto Networks Inc. today said it will acquire Evident.io, which sells compliance automation software, in a $300 million all-cash deal.

Through the acquisition, Palo Alto Networks said, it will be able to extend its application programming interface-based security capabilities. By integrating Evident.io’s technology, the company said, it will be able to help customers ensure their cloud deployments are secure and continuously compliant.

Evident’s tech works by analyzing service and account setting configurations against strict security and compliance controls. Once the integration is complete, customers will be able to use a single approach for continuous monitoring, compliance validation, storage security and monitoring of their cloud deployments, Palo Alto Networks said.

“We believe enterprises will become even more cloud-centric in the future and require prevention methods that have been designed for the cloud,” said Palo Alto Networks’ Chief Executive Officer Mark McLaughlin. “With Evident as part of our platform, Palo Alto Networks will be the only vendor that can deliver a holistic cloud offering to address the critical security needs of today’s enterprise customers as they journey to the cloud.”

Palo Alto Networks’ and Evident.io’s rivals were quick to react to the news of the acquisition. Varun Badhwar, the founder and chief executive officer of Palo Alto Networks’ rival RedLock Inc., said the acquisition is part of a growing trend among data center and network security firms to buy up startups focused on cloud security.

“This consolidation is fueled by the rapid enterprise migration of critical applications to public cloud, and the incompatibility of legacy security solutions in these environments,” Badhwar said. “This is evidenced by a number of recent high-profile cloud security breaches and compliance issues. Today’s news continues this trend, and we should expect this movement to continue.”

However, an opportunistic Badhwar also took the chance to criticize the deal and promote his own company’s offerings, saying that Evident.io’s product is “limited” as it “lacks the architecture to address the more sophisticated, contextual needs for cloud compliance, visibility and governance, and threat detection.”

Mike Kail, chief technology officer at Cybric Inc., which also offers continuous application security software, had some kinder words for his rivals. He said the deal shows that a growing number of enterprises understand the need and value of having continuous visibility into an organization’s security posture.

“Together, Palo Alto Networks and Evident.io will ensure organizations institute proper hygiene measures by taking a continuous improvement approach to ensure their security keeps pace with the inevitable threats of today’s online world,” Kail said.

As part of the deal, Evident.io founders Tim Prendergast and Justin Lundy will join Palo Alto Networks.

“Seeing how our products and cultures will align gives me great confidence that this is a terrific opportunity for our customers, partners, and our team,” Prendergast wrote in a blog post announcing the deal. “Together with the incredible people at Palo Alto Networks, we’ll be fast on our way to delivering new, innovative offerings that benefit from our combined expertise.”

The companies said they expect the acquisition to close during Palo Alto Networks’ fiscal third quarter.

Image: Palo Alto Networks

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