Global cybersecurity solutions provider, Palo Alto Networks, has completed another acquisition. After acquiring Aporeto, a machine identity-based microsegmentation company for $150 million in cash last December, Palo Alto Networks will now pay approximately $420 million in cash to acquire CloudGenix – a cloud-based SD-WAN provider.
Up to now, CloudGenix has attracted approximately 250 customers, many of which are in the Fortune 1000 and include companies in healthcare, retail, manufacturing, finance, banking, tech and hospitality. The cloud-based SD-WAN provider was named a 2020 Gartner Peer Insights Customers’ Choice for WAN Edge Infrastructure. CloudGenix co-founders, Kumar Ramachandran, Mani Ramasamy and Venkataraman Anand, have agreed to join Palo Alto Networks.
To support the “modern” workforce, organizations would need access to their applications from all locations, delivered via a global network ‘as a service’ for accelerated access, and with integrated security from the cloud. This is what the industry calls ‘secure access service edge,’ or SASE.
Palo Alto Networks Prisma Access is such a SASE platform. With the proposed acquisition, Palo Alto Networks will integrate CloudGenix’s cloud-managed SD-WAN products to accelerate the intelligent onboarding of remote branches and retail stores into Prisma Access. This combination would extend the breadth of the Prisma Access SASE platform, address network and security transformation requirements, and accelerate the shift from SD-WAN to SASE.
“As the enterprise becomes more distributed, customers want agile solutions that just work, and that applies to both security and networking,” said Nikesh Arora, chairman and CEO of Palo Alto Networks. “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.”
The acquisition of CloudGenix is expected to close during Palo Alto Networks’ fiscal fourth quarter, subject to the satisfaction of regulatory and customary closing conditions.
“CloudGenix’s vision has been to revolutionize branch offices through cloud-delivered Autonomous WANs,” said Kumar Ramachandran, co-founder and CEO of CloudGenix. “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.”