Palo Alto escalates battle with FireEye with $200M cybersecurity purchase


Palo Alto Networks (PANW -4.2%) is acquiring Israeli cybersecurity startup Cyvera for $200M. The deal is expected to close in 2H14.

Cyvera attempts to prevent zero-day attacks via software installed on Windows endpoints (PCs, servers) that scans for known exploit techniques. The company asserts is solution is superior to alternatives that require a threat to be triggered before action is taken.

The purchase comes on the heels of FireEye's (FEYE -7.1%) purchase of leading endpoint security software/services firm Mandiant; that deal has a value of $1.5B+, after factoring the post-acquisition gains seen by FireEye's shares. Symantec and Cisco's Sourcefire unit also offer endpoint security solutions.

Much as FireEye aims to integrate Mandiant's software/services with its threat-prevention hardware and services, Palo Alto plans to integrate Cyvera's software with its next-gen firewalls and cloud-based security services (e.g. WildFire).

Palo Alto: "Cyvera is an absolute standout. They’ve come up with a completely different approach: one that will forever change the endpoint security industry ...  they’ve successfully stopped every published zero-day attack since they first began deploying their product."

Palo Alto bought threat-intelligence startup Morta Security in January. Both Palo Alto and FireEye are selling off on a rough day for tech stocks.

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