Palo Alto Networks to Buy CloudGenix for $420M

Palo Alto Networks has agreed to acquire cloud-based SD-WAN provider CloudGenix for about $420 million in cash. Its goal is to build out the capabilities of its Prisma Access SASE platform.

Secure Access Service Edge (SASE) is becoming a common term as applications move from data centers to the cloud and businesses struggle to manage access for distributed employees. SASE aims to provide cloud-based support and security for different applications accessed from different locations. It combines WAN capabilities with network security functions like a secure web gateway, cloud access security broker, firewall-as-a-service, and zero-trust network access.

Palo Alto Networks plans to integrate CloudGenix's cloud-based SD-WAN products to improve onboarding for remote branches and stores into Prisma Access. "This combination will extend the breadth of the Prisma Access SASE platform, address network and security transformation requirements, and accelerate the shift from SD-WAN to SASE," officials write in a statement.

San Jose-based CloudGenix was founded in 2013 to transform legacy WANs into a simpler and more secure application-defined structure. The company has raised a total of $99 million over four rounds of funding, CrunchBase reports. CloudGenix has about 250 customers across the healthcare, retail, manufacturing, finance, banking, tech, and hospitality industries. 

The acquisition is expected to close during Palo Alto Networks' fiscal fourth quarter, pending regulatory and customary closing conditions.

Read more details here.

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