Palo Alto Networks To Buy Cloud Security Startups Twistlock, PureSec

Palo Alto Networks said it will pay $410 million to buy rising container security star Twistlock, while terms of the acquisition of early-stage serverless security startup PureSec are not being disclosed.

Palo Alto Networks plans to strengthen its position in the cloud by purchasing rising container security star Twistlock and early-stage serverless security startup PureSec.

The Santa Clara, Calif.-based platform security giant said it will pay $410 million to buy Portland, Ore.-based Twistlock, while terms of the PureSec acquisition are not being disclosed. Adding Twistlock and Tel Aviv, Israel-based PureSec to the Palo Alto Networks Prisma cloud security suite will put the company in a unique position to secure modern applications throughout their entire lifecycle.

"Our acquisition of these leading companies will significant enhance our ability to be the cybersecurity partner of choice for our customers," Palo Alto Networks Chairman and CEO Nikesh Arora said in a statement.

[Related: Palo Alto Networks To Buy Container Security Startup Twistlock: Reports]

Both acquisitions are expected to close during Palo Alto Networks' fiscal fourth quarter, which ends July 31. The company's stock is down $9.32 (4.33 percent) to $206 in after-hours trading Wednesday.

Twistlock was founded in 2015, employs 126 people, has raised $63.1 million of outside funding, and serves more than 290 customers, including more than a quarter of the Fortune 100. Twistlock so-founders Bern Bernstein and Dima Stopel will join Palo Alto Networks. This acquisition was first reported early Wednesday via Israeli business publications Globes and Calcalist.

"Our vision for a cloud-native security platform is a natural fit with Palo Alto Networks cloud strategy," Bernstein said in a statement. "We have liked-minded teams, and we're looking forward to accelerating our ability to serve customers and partners on their cloud-native journey together."

PureSec, meanwhile, was founded in 2016, employs 16 people, and has raised $10 million in two rounds of outside funding, according to CrunchBase and LinkedIn. PureSec co-founders Shaked Zin, Ory Segal and Avi Shulman will join Palo Alto Networks, according to the company.

"PureSec's vision has always been to ensure that all serverless applications will be secured at the very highest level," Zin said in a statement. "By joining forces with Palo Alto Networks, we will undoubtedly be able to make that a reality much faster."