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Palo Alto Networks Acquires CloudGenix for SD-WAN, SASE Strategy


Palo Alto Networks is acquiring SD-WAN provider CloudGenix for roughly $420 million in cash. The deal is expected to boost Palo Alto Networks' Secure Access Service Edge (SASE) strategy.

This is M&A deal 165 that MSSP Alert and ChannelE2E have covered so far in 2020. The pace of deals has slowed a bit since the coronavirus pandemic emerged, but overall deal volume remains reasonable steady. See the complete M&A deal list here.

CloudGenix will align with Palo Alto Networks Prisma Access -- a SASE platform that can "address network and security transformation requirements, and accelerate the shift from SD-WAN to SASE," the buyer asserts.

CloudGenix has roughly 250 customers. Co-founders, Kumar RamachandranMani Ramasamy and Venkataraman Anand have agreed to join Palo Alto Networks once the deal closes.

Palo Alto Networks Acquires CloudGenix: Executive Perspectives

Palo Alto Networks CEO Nikesh Arora
Palo Alto Networks CEO Nikesh Arora

In a prepared quote about the deal, Nikesh Arora, chairman and CEO, Palo Alto Networks, said:

"As the enterprise becomes more distributed, customers want agile solutions that just work, and that applies to both security and networking. Upon the close of the transaction, the combined platform will provide customers with a complete SASE offering that is best-in-class, easy to deploy, cloud-managed, and delivered as a service."

Added Kumar Ramachandran, co-founder and CEO, CloudGenix:

"CloudGenix's vision has been to revolutionize branch offices through cloud-delivered Autonomous WANs. With CloudGenix, enterprises gain cloud-scale economics for the branch office with the freedom to use any WAN, any cloud, and best-of-breed infrastructure services. We thank our customers for making us an industry leader in enterprise SD-WAN. By joining forces with Palo Alto Networks, we will accelerate our ability to serve customers and partners in their network and security transformation."

Palo Alto Networks Acquisitions

After hiring Google veteran Nikesh Arora as CEO in mid-2019, Palo Alto Networks has maintained steady M&A activity.

Recent deals include acquiring:

  •  Aporeto, a company that provides a Zero Trust Cloud Security Platform and machine identity-based micro-segmentation.
  • Zingbox, an Internet of Things (IoT) cybersecurity company.
  • Twistlock for cloud container & VM cybersecurity.
  • Demisto, a startup Security Orchestration, Automation and Response (SOAR) software provider for MSSPs.
  • Compliance & risk management platform provider RedLock for $173 million.

Generally speaking, the deals align with Palo Alto Networks' channel partner and MSSP initiatives -- which have been accelerating.

Palo Alto Networks and Coronavirus Response

Karl Soderlund

Meanwhile, Palo Alto Networks. has been working overtime to assist customers and partners amid the coronavirus pandemic.

For instance, the security company has adjusted its compliance requirements to ensure solutions providers maintain their various partner program designations. Additional partner support efforts include online certifications, extended certifications, virtual labs and social selling strategies. Check out the details from Senior VP Karl Soderlund.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.