By ; Nelly Ali

Palo Alto Networks (NYSE: PANW), the global cybersecurity leader, announced that it has entered into a definitive agreement to acquire Zingbox, an IoT security company, for a total purchase price of $75 million, subject to adjustment, to be paid in cash. The proposed acquisition is expected to close during Palo Alto Networks fiscal first quarter of 2020, subject to the satisfaction of customary closing conditions.

The number of connected devices in enterprises is growing exponentially, yet most of these devices are unmanaged and pose a security risk. Current IoT point products mostly focus on device profiling and inventory, not on detecting or stopping sophisticated attacks. Organizations are forced to integrate multiple IoT security products across different vendors, introducing complexity, higher cost, and manual effort.

Zingbox’s cloud-based service and advanced AI and machine learning technology for device and threat identification capabilities will accelerate Palo Alto Networks delivery of IoT security through its Next-Generation Firewall and Cortex™ platforms. Organizations will gain the ability to quickly improve the visibility and security of their IoT landscape. Once combined, Palo Alto Networks will offer IoT security with best-in-class visibility and automated in-line prevention, all integrated with the Next-Generation Firewall and Cortex platforms.

"The proliferation of IoT devices in enterprises has left customers facing an enormous gap in protection against cybersecurity attacks. With the proposed acquisition of Zingbox, we will provide a first-of-its-kind subscription for our Next-Generation Firewall and Cortex platforms that gives customers the ability to gain control, visibility, and security of their connected devices at scale.” – Nikesh Arora, chairman and CEO of Palo Alto Networks

“Our vision has always been to ensure that organizations realize the full benefits of IoT devices without sacrificing security. By joining forces with Palo Alto Networks, we will be able to secure connected devices at scale to help organizations embrace digital transformation.” – Xu Zou, CEO of Zingbox

Zingbox’s products will continue to be available to customers after the transaction closes. The company’s co-founders, Xu Zou, May Wang, and Jianlin Zeng, will join Palo Alto Networks.

Zingbox is an Internet of Things (IoT) lifecycle management solution provider. Zingbox provides a cloud based service to discover, identify, secure and optimize devices, using advanced AI and machine learning technologies. Recently named a “Cool Vendor in IoT Security” by Gartner and recipient of the Gold Stevie Award for Most Innovative Company, Zingbox helps organizations realize the full potential of their IoT devices. The company’s device-specific AI-powered machine learning platform uses the first real-time deep behavioral learning technology for IoT devices, delivering a new standard for uninterrupted service across the entire IOT environment of its customers. For more information, please visit https://www.zingbox.com.