Palo Alto Networks Completes Acquisition of Demisto

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Mar 28, 2019, 16:15 ET

SANTA CLARA, Calif., March 28, 2019 /PRNewswire/ -- Palo Alto Networks (NYSE: PANW), the global cybersecurity leader, today announced it has completed its acquisition of Demisto, a leading cybersecurity company specializing in security orchestration, automation and response, or SOAR. The acquisition accelerates Palo Alto Networks Cortex™ AI-based continuous security platform strategy and further advances the company's ability to deliver automated threat prevention and response for security teams.

"With the combination of Demisto and our existing threat prevention and response capabilities, we will be well-positioned to unlock the biggest challenges facing teams in security operations centers today," said Nikesh Arora, CEO of Palo Alto Networks. "We are excited to welcome Demisto to Palo Alto Networks. While Demisto products will continue to be available to customers and partners, the integration of Demisto into Cortex will bring stronger automation and artificial intelligence capabilities to our platform, delivering greater protection across all environments."

Demisto combines security orchestration and automation, incident management, and interactive investigation to help customers best leverage security tools and talent. Palo Alto Networks will build on the benefits Cortex brings to the SOC environment by making Demisto's security orchestration and automation capabilities immediately available to customers. The company will continue to support integrations through the Demisto platform and will retain and build upon its open partner ecosystem.

Palo Alto Networks paid approximately $560 million in cash and stock, excluding purchase price adjustments, to acquire Demisto.

About Palo Alto Networks
We are the global cybersecurity leader, known for always challenging the security status quo. Our mission is to protect our way of life in the digital age by preventing successful cyberattacks. This has given us the privilege of safely enabling tens of thousands of organizations and their customers. Our pioneering Security Operating Platform emboldens their digital transformation with continuous innovation that seizes the latest breakthroughs in security, automation, and analytics. By delivering a true platform and empowering a growing ecosystem of change-makers like us, we provide highly effective and innovative cybersecurity across clouds, networks, and mobile devices.

Palo Alto Networks, Cortex and the Palo Alto Networks logo are trademarks of Palo Alto Networks, Inc. in the United States and in jurisdictions throughout the world. All other trademarks, trade names or service marks used or mentioned herein belong to their respective owners.

Forward-Looking Statements

This press release contains "forward-looking" statements that are based on our management's beliefs and assumptions and on information currently available to management. Such forward-looking statements include statements regarding the expected benefits of the acquisition of Demisto to us, our market position, and our customers, the expected impact of the acquisition on our offerings, our expectations regarding our existing and acquired offerings performing as intended, our integration plans, and our expectations about the availability of Demisto's products to customers and partners post-closing. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including risks associated with new product and subscription releases, including our limited operating history; risks associated with managing our rapid growth; our ability as an organization to successfully integrate Demisto and acquire and integrate other companies, products or technologies in a successful manner; the risks associated with new products and subscription and support offerings, including the discovery of software bugs; our ability to attract and retain new customers; delays in the development or release of new subscription offerings, or the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscription and support offerings; rapidly evolving technological developments in the market for network security products and subscription and support offerings; length of sales cycles; and general market, political, economic and business conditions.

Additional risks and uncertainties are included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our quarterly report on Form 10-Q filed with the Securities and Exchange Commission ("SEC") on February 27, 2019, which is available on our website at investors.paloaltonetworks.com and on the SEC's website at www.sec.gov. Additional information will also be set forth in other filings that we make with the SEC from time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made or to update the reasons why actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.

SOURCE Palo Alto Networks, Inc.