Palo Alto Networks Buys Expanse
|Nikesh Arora, Chief Executive Officer and Chairman, Palo Alto Networks.
Photo credit: World Economic Forum is licensed under CC BY-NC-SA 2.0
Cybersecurity company Palo Alto Networks has announced that it’s reached a deal to acquire Expanse, a cybersecurity startup, for $800 million, split into $670 million in cash and stock and an additional $130 million in equity earn-outs. The acquisition marks a significant win for Expanse, which is backed by $136 million in outside funding from investors including well-known names like IVP, Founders Fund, New Enterprise Associates, Palantir chairman Peter Thiel, and media entrepreneur Ariana Huffington.
Expanse is a cybersecurity platform that’s specialized in what it terms as “Attack Surface Management”. Basically, it’s a tool used by enterprises to monitor their networks for potential cybersecurity mishaps and respond to them if needed. Expanse’s customers include several Fortune 500 organizations as well as the US military.
Following the completion of the acquisition, Expanse’s team will join Palo Alto Networks and will continue to be led by its founders, Tim Junio and Matt Kraning. Expanse marks Palo Alto Networks’ third acquisition so far in this year, the other two being CloudGenix which it acquired for $420 million and The Crypsis Group which it acquired for $265 million.
Since the appointment of Palo Alto Networks’ current CEO, Nikesh Arora, in 2018, the company has taken to major acquisitions to boost its business. Arora has overseen eight acquisitions worth over $2 billion in the span of two years and has, now, boosted that number to nearly $3 billion with an $800 million deal for Expanse.