Thought Leadership
Zscaler has announced the acquisition of Denver-based MDR specialist Red Canary. With the acquisition, zero-trust provider Zscaler wants to position itself in the growing market for managed detection and response. The deal is expected to close in August.
Both companies are not disclosing the purchase price. Red Canary had previously raised over 135 million dollars in several financing rounds, with the last Series C round in 2021 alone bringing in 81 million dollars.
Strategy to be continued consistently
This is the second major acquisition for Zscaler in a short space of time. In 2024, the company had already spent 350 million dollars on the Israeli risk management provider Avalor.
Red Canary brings one thing above all: Human expertise in 24/7 monitoring and incident response. This complements Zscaler’s automated zero-trust infrastructure, which handles 500 billion transactions every day. Sifting through this amount of data intelligently and responding quickly in an emergency requires specialized teams – and that’s exactly what Red Canary delivers.
Market consolidation continues
Red Canary is a natural extension of the MDR and threat intelligence services, comments Zscaler CEO Jay Chaudhry. The aim is to offer customers a “fully integrated zero-trust platform with AI-powered security operations”.
This acquisition is in line with the trend in the cybersecurity industry: instead of individual solutions, companies are increasingly opting for integrated platforms from a single source. Accordingly, the large providers are buying up smaller specialists to complete their portfolios.
