Zscaler in negotiations to acquire cyber startup Avalor for $250-350 million
Zscaler in negotiations to acquire cyber startup Avalor for $250-350 million
Avalor, which came out of stealth with a $25 million Series A last year, has developed an open data platform which can integrate data from legacy systems, data lakes, data warehouses, SQL databases, applications, and more, and then normalize and analyze it
American cybersecurity giant Zscaler is in negotiations to purchase Israeli startup Avalor for approximately $250-350 million, Calcalist has learned.
If the negotiations are concluded successfully, this will be the third acquisition by Zscaler in Israel, following the purchase of Canonic for about $50 million in February of last year and that of Trustdome for $40 million in April 2021. Zscaler currently has a market cap of around $34 billion, employing about 6,000 people, with annual revenues of approximately $2 billion.
Avalor came out of stealth last April, raising a $25 million Series A round led by TCV with participation from Salesforce Ventures. The Series A came on the back of a $5 million Seed round led by Cyberstarts with participation from Jibe Ventures and industry angels.
The company, which employs dozens of people and is headquartered in Ramat Gan, was co-founded by Raanan Raz and Kfir Tishbi. Prior to Avalor, Raz led the engineering at Dataroma, building the data platform of what became the Salesforce Marketing Cloud Intelligence platform. Dataroma was acquired by Salesforce for $820 million in 2018. Tishbi, built high performance computing solutions at CitiBank, was a founding member of the AI lab at Playtika, and later joined Datorama to oversee all big data initiatives.
The company's solution integrates disparate data sources from legacy systems, data lakes, data warehouses, SQL databases, applications or any source of data, providing a holistic view of business performance. Avalor's platform enables teams to prioritize risks by conducting an analysis of all organizational data, not limited to security data. It aligns with business goals, identifying and reporting on the prioritization of addressing weaknesses in a business context, using Key Performance Indicator (KPI) indicators. The platform allows for complete and accurate data analysis, ensuring a quick and accurate response to business-related questions using data from all parts of the organization. It also empowers stakeholders with real-time transparency, providing visibility of data sources through the application of labeling and data flow investigation for the security team and internal organizational partners.
Raanan Raz, co-founder and CEO of Avalor, told Calcalist: "We are an excellent company and receive acquisition offers all the time. We are continuing full speed ahead."
Zscaler's response could not be obtained.
