Zscaler acquires Avalor

Unleashing the power of enterprise security data.

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Zscaler (NASDAQ: ZS), which positions itself as the leader in cloud security, announced another major leap forward in artificial intelligence (AI) innovations that extends the Zscaler Zero Trust Exchange data from more than 400 billion daily Zscaler transactions with Avalor’s Data Fabric for Security, with over 150 pre-built integrations enabling customers to proactively identify and predict critical vulnerabilities as well as improve operational efficiencies. By leveraging its massive data foundation, Zscaler is poised to transform the AI capabilities for the cyber security industry to not only enable organisations to mitigate risks and optimise performance, but also pave the way for zero-touch operations.

The rapid advancement of AI will have pivotal impacts to the cyber security industry and, to effectively combat AI-led threats, organisations must fully harness their currently isolated security data at massive scale. Zscaler's 16 years of leadership operating the world's largest cloud security platform has allowed it to leverage a massive data set to develop its pioneering AI-driven solutions, including Zscaler Risk360 and Zscaler Business Insights, which set a new benchmark for proactive cyber security and business intelligence.

“AI is only as good as the underlying data, and many solutions lack the additional context and knowledge from data sources across the enterprise to truly leverage security-specific AI models,” said Jay Chaudhry, CEO, Chairman and Founder of Zscaler. “Zscaler operates the world’s largest security cloud with the most relevant data to train security-specific large language models (LLMs) and, with the Avalor acquisition, we can more effectively identify vulnerabilities, while predicting and preventing breaches.”

Avalor’s Data Fabric for Security ingests, normalises and unifies data across enterprise security and business systems to deliver actionable insights, analytics and operational efficiencies. By expanding Zscaler’s Zero Trust Exchange platform with a security-centric data fabric, Zscaler enables enterprises to significantly enhance and fully automate AI-driven analytics and decision-making in real-time, without the complexity of data aggregation and collection. Customers now have dynamic and customisable prioritisation, streamlined reporting, zero-copy analytics and real-time incident mitigation, as well as advanced threat detection, auto data discovery, classification and policy generation, all within the Zscaler cloud security platform.

“We have long understood that being able to make sense of all the disparate security data sources in an organisation is essential to understanding and improving risk posture; that’s why we delivered the industry's first Data Fabric for Security to provide that aggregated platform,” said Raanan Raz, co-founder and CEO at Avalor. “The first application running on our Data Fabric is our Unified Vulnerability Management (UVM) module. By combining the Zscaler proprietary data sets with the 150 third-party sources Avalor supports, we will be in a prime position to enhance our UVM capabilities and create new applications with additional cyber protection insights.”

Together, we're advancing AI.

To learn more about Zscaler’s AI capabilities, please visit https://www.zscaler.com/capabilities/machine-learning.

Transaction details

The purchase price was paid predominantly in cash, with a portion delivered in the form of equity subject to vesting conditions. The acquisition closed on 13 March 2024.