Firewall maker Palo Alto Networks Inc. said it will buy Israeli security firm Cyvera for about $200 million in cash and stock, the company said in a release.
After the announcement Palo Alto shares fell almost 5 percent at noon trading to $72.84. The deal also appears to be pushing down shares of Palo Alto rival FireEye, which is off $5.36, or almost 8%, at $64.30.
The Tel Aviv-based Cyvera offers endpoint cyber defense solutions that focus on protecting against Zero Day attacks.
“It (acquisition) enables us to accelerate the delivery of the market’s only highly integrated and automated enterprise security platform spanning network, endpoints, and the cloud,” Palo Alto Networks CEO Mark McLaughlin said in the release. “For customers, this translates into the most sophisticated and automated threat prevention for their entire organization.”
Palo Alto will pay about $88 million in cash and $112 million in stock for Cyvera. The acquisition is expected to close in the second half of this year.
The deal is Palo Alto’s second acquisition after buying privately held Morta Security Inc. in January. Former National Security Agency (NSA) officials founded that company.
FireEye bought cyber forensics company Mandiant Corp in December for about $1 billion.