Palo Alto Networks Inc. is reportedly holding talks to buy Talon Cyber Security Ltd., the developer of a secure browser designed for enterprises.

Calcalist reported the negotiations on Thursday. The deal, if it happens, is expected to value Talon at $600 million. The acquisition talks are said to be at an advanced stage.

Tel Aviv-based Talon has raised more than $126 million in funding since launching two years ago. Its investors include CrowdStrike Holdings Inc. Chief Executive Officer George Kurtz as well as the cybersecurity giant’s venture capital arm, Falcon Fund. Talon is also backed by Lightspeed Venture Partners, Team8 and a number of other institutional investors.

Talon’s flagship product is a browser called TalonWork. It’s based on Chromium, the open-source browser that forms the foundation of Google Chrome. Talon has extended Chromium’s feature set with a raft of cybersecurity capabilities designed to protect workers from hacking attempts.

The first set of breach prevention tools in TalonWork focuses on regulating web traffic. According to the company, its browser can block website links in phishing emails and other malicious URLs. Additionally, companies can make their web applications accessible only to employees who log in via TalonWork.

The browser also includes a collection of features designed to mitigate the risk posed by file downloads. TalonWork scans files for malware before allowing workers to install them. Additionally, it encrypts downloaded documents that contain sensitive information to make their contents inaccessible for unauthorized users.

A third set of built-in cybersecurity features can block cyberattacks that target TalonWork itself. According to Talon, its browser automatically downloads patches and blocks malicious extensions. The company has also modified Chromium, the open-source project on which the browser is based, by disabling certain components that are frequently targeted by hackers.

If Palo Alto Networks’ reported plan to buy Talon materializes, the deal would mark one of the cybersecurity giant’s largest acquisitions in recent memory.

Since 2017, Palo Alto Networks has purchased more than a half-dozen companies in a series of deals worth over $1.5 billion. Like Talon, those companies were cybersecurity startups founded a few years before they were bought. The largest deal Palo Alto Networks inked as part of the acquisition spree was its $560 million purchase of Demisto Inc. in 2019.

The $600 million the cybersecurity giant could reportedly pay for Talon is more than four times higher than the amount of venture funding the latter company has raised. This suggests Palo Alto Networks sees significant opportunities in the secure browser market. More specifically, the steep acquisition price suggests that enterprise adoption of secure browsers is growing rapidly.

The acquisition may create more competition for Talon’s rivals. With access to Palo Alto Networks’ resources, the browser maker could speed up its feature development roadmap and go-to-market initiatives. Although the category is heating up, it’s not certain that users or enterprises will take to secure browsers in great numbers.

Talon’s competitors include Island Technology Inc., which received a $1.3 billion valuation last year after closing a $115 million funding round. Island develops a Chromium-based browser with built-in cybersecurity defenses and administrative controls. 

Image: Talon