Zscaler, a cloud safety firm with headquarters in San Jose, California, has acquired cybersecurity startup Avalor 26 months after its founding, reportedly for $310 million in money and fairness.

In a press launch announcing the information, Zscaler founder and CEO Jay Chaudhry stated that the deal would develop Zscaler’s platform with capabilities together with streamlined reporting of safety incidents, incident mitigation, asset discovery, information classification, safety coverage technology and extra.

“AI is simply pretty much as good because the underlying information, and lots of options lack the extra context and information from information sources throughout the enterprise to actually leverage security-specific AI fashions,” Chaudhry stated in a press launch. “Zscaler operates the world’s largest safety cloud with essentially the most related information to coach safety particular massive language fashions, and with the Avalor acquisition, we are able to extra successfully establish vulnerabilities whereas predicting and stopping breaches.”

Raanan Raz co-founded Avalor with Kfir Tishbi, who beforehand led the engineering group at Datorama, a advertising and marketing analytics firm acquired by Salesforce in 2018. Raz and Tishbi labored collectively at Datorama each main as much as — and after — the Salesforce buy.

Avalor acts as a supply of fact for cybersecurity belongings, controls, identities, vulnerabilities, bugs and different information factors, permitting safety groups to mixture, normalize, de-duplicate and monitor threat information from discovery to remediation.

It’s not a singular idea. An array of startups on the market sort out the identical drawback, like Securiti and Dig Safety. However what units Avalor aside is the power to deal with information from just about any supply in any format, and its distinctive set of vulnerability threat administration and prioritization instruments.

Previous to the Zscaler acquisition, Avalor managed to safe $30 million from buyers together with TCV, Salesforce Ventures, Jibe Ventures and Cyberstarts. And Raz sees Zscaler taking the enterprise — and its ~80-person group unfold throughout the U.S. and Israel — additional.

“[With Zscaler, ] we get instantaneous entry to a set of sources it could have taken years for us to develop organically — 7,000 prospects, 4,200 channel companions globally, near-ubiquitous buyer consciousness and the validation of a $2 billion enterprise behind us,” Raz wrote in a post on Avalor’s weblog printed Thursday morning. “We’ll proceed to function independently as an entire Avalor group, and we’ll have all of the tailwinds of the superb Zscaler sources serving to us.”

Avalor is Zscaler’s third acquisition after Canonic, a startup centered on defending in opposition to cyberattacks concentrating on software-as-a-service merchandise, and Trustdome, a cloud infrastructure entitlement platform. Based in 2007 by Chaudhry and Ok. Kailash, Zscaler — which went public in March 2018 — has ~7,000 staff and a market cap of about $30 billion.

As Crunchbase’s Chris Metinko noted earlier at the moment, Zscaler’s acquisition — together with others within the cybersecurity house — may assist spark exercise in a slow-to-stagnant cyber M&A market. Final yr noticed solely 66 M&A offers involving VC-backed cybersecurity startups, per Crunchbase — a 26% drop from 2022 (which noticed 89 such offers) and greater than a 50% decline from 2021 (139 offers).

To this point in 2024, there’s been 18 cybersecurity-related mergers and acquisitions, with particularly notable strikes being made by Wiz, SentinelOne and Crowdstrike.