Image Source: Pixabay
Shares of Zscaler Inc (Nasdaq: ZS) are up 4.0% on Monday following a report that the cloud security company is in talks to buy Avalor.
How much could Zscaler spend on Avalor?
The $36 billion company based out of San Jose, California is willing to spend between $250 million to $350 million on the potential acquisition, as per a Calcalist report over the weekend.
Zscaler is yet to comment on the news. But Raanan Raz – the chief executive of Avalor said in a statement to Calcalist today:
We are an excellent company and receive acquisition offers all the time. We are continuing full speed ahead.
The report arrives more than a month after Zscaler Inc reported its financial results for the first quarter that handily topped Street estimates.
Zscaler has a history of buying Israeli startups
Note that it’s not the first time that Zscaler Inc has shown interest in buying an Israeli startup.
In April of 2021, the Nasdaq-listed firm spent some $40 million to acquire Trustdome to expand its footprint in cloud security posture management (CSPM). It also bought Canonic Security – a platform that minimises risk of SAAS supply chain attacks last year for $50 million.
⚠️ThreatLabz has identified a new #ransomware group called #Slug that is performing data extortion attacks only (no file encryption).
— Zscaler ThreatLabz (@Threatlabz) January 17, 2024
Current leak site URL: https://t.co/K0Rk4vOA7S
Ransom note: https://t.co/86j4J7FVbz
Negotiations are performed through the @session_app pic.twitter.com/tX6Qb6ND8T
In 2023, Avalor also announced $30 million in funding including a TCV-led $25 million Series A in which Salesforce Ventures participated as well.
Wall Street currently has a consensus “overweight” rating on shares of Zscaler Inc that have close to tripled versus its 52-week low in last May.
More By This Author:
Grayscale Could Lose All Its Holdings Within The Next Two Months
US Consumer Confidence Rises By The Most In Over 30 Years: Here’s What It Means For Gold And Stocks
Grayscale Floods New York With Bitcoin Ads In A Massive Marketing Campaign
Comments
Log in or sign up to join the conversation.