Palo Alto Networks Acquires Cloud Security Startups Twistlock and PureSec

Network security giant Palo Alto Networks (NYSE: PANW) announced on Wednesday that it has agreed to acquire two security startups that it says will help extend its cloud security capabilities.

Santa Clara, Calif.-based Palo Alto said it has agreed to pay roughly $410 million in cash to acquire container security Twistlock, and an undisclosed amount to acquire “serverless security” firm PureSec.

Twistlock’s flagship cloud native security platform is API-enabled and provides protection for containers, serverless functions, and container-as-a-service platforms into a single full stack security platform, regardless of what underlying compute technology powers them.

PureSec’s security solution provides protection for serverless architectures and helps customers build and maintain secure and reliable serverless applications. The solution provides end-to-end security for serverless functions that cover vulnerability management, access permissions, and runtime threats.

Twistlock and PureSec technologies will be integrated into Palo Alto’s Prisma cloud security suite.

“Our vision for a cloud-native security platform is a natural fit with Palo Alto Networks cloud strategy. We have liked-minded teams, and we’re looking forward to accelerating our ability to serve customers and partners on their cloud-native journey together,” Ben Bernstein, co-founder and CEO of Twistlock, said in a statement.

Both acquisitions are expected to close during Palo Alto Networks fiscal fourth quarter, subject to the satisfaction of regulatory approvals and other customary closing conditions, the company said.

Palo Alto Networks also annnounced on Wednesday that total revenue for its fiscal first quarter 2019 was $656 million, a 31 percent year over year increase compared with total revenue of $501.8 million for the same period last year.