October 31, 2023 at 02:22PM
Palo Alto Networks has announced its acquisition of Dig Security, an Israeli company specializing in Data Security Posture Management (DSPM) technology. Dig Security’s solution helps organizations protect sensitive data in the cloud, and it will be integrated into Palo Alto’s Prisma Cloud platform. Analysts see the acquisition as a strategic move to strengthen Palo Alto’s Prisma Cloud business. The financial details of the transaction have not been disclosed, but some reports estimate it to be around $400 million. Dig Security’s founders will continue leading their teams within Palo Alto Networks. The acquisition is subject to regulatory approvals and customary closing conditions.
Meeting Takeaways:
1. Palo Alto Networks (NASDAQ: PANW) has entered into a definitive agreement to acquire Dig Security, a Tel Aviv-based provider of Data Security Posture Management (DSPM) technology.
2. Dig Security’s DSPM solution helps organizations discover, classify, monitor, and protect sensitive data across all cloud data stores.
3. The acquisition will offer Palo Alto Networks’ customers enhanced visibility and control over their multi-cloud data estate through integration with the Prisma Cloud platform.
4. Analysts from Jefferies view the acquisition as strategic and complementary, expecting it to bolster Palo Alto Networks’ $500 million Prisma Cloud business, as well as potentially expand its reach into governance tools for AI data sets.
5. The financial details of the transaction were not disclosed, but some reports estimate the deal at $400 million. The purchase price may be announced when PANW reports earnings in a few weeks.
6. Dig Security’s founders, Dan Benjamin, Ido Azran, and Gad Akuka, will continue to lead their teams and join the Prisma Cloud team at Palo Alto Networks after the acquisition is finalized.
7. Palo Alto Networks’ Chief Product Officer, Lee Klarich, expressed enthusiasm for the acquisition, citing Dig Security’s innovative DSPM technology as crucial for safely enabling the shift to AI-enabled applications in the cloud.
8. The acquisition is expected to close in the coming months, subject to regulatory approvals and customary closing conditions.