Why Palo Alto Networks (PANW) Is Buying Expanse For $800 Million

By Noah Long ● November 13, 2020
  • Global cybersecurity leader Palo Alto Networks recently announced that it entered into a definitive agreement to buy attack surface management company Expanse for $800 million. These are the details about the deal.

Global cybersecurity leader Palo Alto Networks recently announced that it entered into a definitive agreement to buy attack surface management company Expanse. As part of the agreement, Palo Alto Networks will acquire Expanse for a total purchase price of approximately $670 million to be paid in cash and stock and approximately $130 million in replacement equity awards, each such amount subject to adjustment. The acquisition is expected to close during Palo Alto Networks’ fiscal second quarter.

Expanse’s Internet collection and attribution platform is able to constantly monitor the global internet to map exposed and untracked assets that comprise customers’ attack surfaces, evaluate and prioritize risk, and provide mitigation. 

And Expanse’s data provides CISOs with a view of the enterprise from the outside, which represents the view an attacker sees as they probe for points of weakness. 

Once the deal is completed, the Expanse platform will significantly enrich the Cortex product suite and create the ability to stitch together external, internal, and threat data to provide organizations with a complete integrated view of the enterprise.

Some of Expanse customers include Fortune 500 organizations in the financial, healthcare, entertainment, and technology industries as well as mission-critical government organizations, including the U.S. military. Going forward, Expanse co-founders Dr. Tim Junio and Dr. Matt Kraning will join Palo Alto Networks.

KEY QUOTES:

“We are thrilled to add the Expanse platform to our Cortex product suite. By integrating Expanse’s attack surface management capabilities into Cortex after closing, we will be able to offer the first solution that combines the outside view of an organization’s attack surface with an inside view to proactively address all security threats. We believe this will be a game-changer in security operations.”

— Nikesh Arora, chairman and CEO of Palo Alto Networks

“Expanse’s mission is to discover and mitigate risks for our customers that no one else can find. The world’s largest and most complex organizations trust Expanse to continuously discover, inventory, monitor, and report against their dynamically changing attack surface. Matt and I look forward to joining forces with Palo Alto Networks to help secure the internet for enterprises and governments around the world.”

— Tim Junio, co-founder and CEO of Expanse