Palo Alto Networks Completes Acquisition of The Crypsis Group

Rhea-AI Summary

Palo Alto Networks (PANW) has completed the acquisition of The Crypsis Group for approximately $265 million in cash. This strategic acquisition enhances the Cortex™ platform by integrating expert incident response and digital forensics services, allowing for improved breach management and security telemetry collection. The Crypsis Group, known for handling complex security incidents, aims to bolster Palo Alto Networks' ability to protect customers from future cyber threats. The acquisition is anticipated to support rapid response capabilities at scale.

Positive

• Acquisition enhances Cortex platform with expert incident response services.
• Strengthens Palo Alto Networks' ability to manage breaches and improve security telemetry.
• Expected to provide scalable incident response and forensic consulting.

Negative

• None.

SANTA CLARA, Calif., Sept. 17, 2020 /PRNewswire/ -- Palo Alto Networks (NYSE: PANW), the global cybersecurity leader, today announced it has completed its acquisition of The Crypsis Group, a leading incident response, risk management and digital forensics consulting firm. The acquisition will further strengthen Palo Alto Networks Cortex™ platform with expert services for incident response and proactive assurance.

"We are excited to welcome The Crypsis Group to Palo Alto Networks," said Nikesh Arora, chairman and CEO of Palo Alto Networks. "This is a team that has handled the most difficult and complex security incidents. The addition of their consulting services will not only strengthen Cortex XDR and help us protect customers from future cyberattacks but also assist in mitigating the potential impact resulting from a breach."

Palo Alto Networks already provides best-in-class prevention, detection and response capabilities through Cortex XDR™. The integration of The Crypsis Group's security consulting and forensics capabilities will strengthen Cortex XDR's ability to collect rich security telemetry, manage breaches and initiate rapid response actions. In addition, Palo Alto Networks can now provide incident response and forensic consulting capabilities at scale.

The Crypsis Group CEO Bret Padres and his team will join the Cortex team at Palo Alto Networks. Palo Alto Networks paid approximately $265 million in cash, excluding purchase price adjustments, to acquire The Crypsis Group. The Crypsis Group operated as part of the ZP Group, an organization with a portfolio of companies specializing in breach response, national security solutions and IT staffing.

About Palo Alto Networks

Palo Alto Networks, the global cybersecurity leader, is shaping the cloud-centric future with technology that is transforming the way people and organizations operate. Our mission is to be the cybersecurity partner of choice, protecting our digital way of life. We help address the world's greatest security challenges with continuous innovation that seizes the latest breakthroughs in artificial intelligence, analytics, automation, and orchestration. By delivering an integrated platform and empowering a growing ecosystem of partners, we are at the forefront of protecting tens of thousands of organizations across clouds, networks, and mobile devices. Our vision is a world where each day is safer and more secure than the one before. For more information, visit www.paloaltonetworks.com.

Palo Alto Networks, Cortex, Cortex XDR, and the Palo Alto Networks logo are trademarks of Palo Alto Networks, Inc. in the United States and in jurisdictions throughout the world. All other trademarks, trade names, or service marks used or mentioned herein belong to their respective owners. 

Forward-Looking Statements

This press release contains "forward-looking" statements that are based on our management's beliefs and assumptions and on information currently available to management. Such forward-looking statements include statements regarding the expected benefits of the acquisition of The Crypsis Group to us, and our combined current and future customers, the expected impact of the acquisition on our offerings, and our expectations regarding our existing and acquired offerings and services once integrated performing as intended. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including risks associated with developments and changes in general market, political, economic, and business conditions; the duration and global impact of the COVID-19 pandemic; the impact of COVID-19 on our customers' purchasing decisions; new product and subscription releases; risks associated with managing our growth; our ability as an organization to successfully integrate The Crypsis Group and acquire and integrate other companies, products or technologies in a successful manner; the risks associated with new product, subscription and support offerings, including the discovery of software bugs; our ability to attract and retain new customers; delays in the development or release of new subscription offerings, or the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscription and support offerings; rapidly evolving technological developments in the market for network security products and subscription and support offerings; and length of sales cycles.

Additional risks and uncertainties are included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our annual report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on September 4, 2020, which is available on our website at investors.paloaltonetworks.com and on the SEC's website at www.sec.gov. Additional information will also be set forth in other filings that we make with the SEC from time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made or to update the reasons why actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.

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SOURCE Palo Alto Networks, Inc.

FAQ

What are the details of Palo Alto Networks' acquisition of The Crypsis Group?

Palo Alto Networks acquired The Crypsis Group for approximately $265 million in cash to enhance its Cortex platform.

How will the acquisition of The Crypsis Group impact Palo Alto Networks' stock?

The acquisition is expected to strengthen Palo Alto Networks' security offerings, potentially leading to improved market positioning and investor confidence.

What is the strategic importance of The Crypsis Group for Palo Alto Networks?

The Crypsis Group provides incident response and digital forensics consulting, which will enhance Palo Alto Networks' ability to respond to cyber incidents effectively.

When was the acquisition of The Crypsis Group completed?

The acquisition was completed on September 17, 2020.

What benefits does Palo Alto Networks expect from acquiring The Crypsis Group?

Palo Alto Networks expects to improve its Cortex platform capabilities and provide enhanced protection against future cyberattacks.