Zscaler to Acquire MDR Specialist Red Canary

Zscaler on Tuesday signaled a big push into the security-operations market with the announcement of plans to buy Denver-based managed detection and response (MDR) specialist Red Canary.

Financial terms of the transaction were not released.

The deal, which is expected to close in August, adds technology for round-the-clock human monitoring and incident response on top of Zscaler’s zero-trust cloud.

Red Canary raised more than $135 million across several funding rounds, including an $81 million Series C in 2021. The company counts Summit Partners, Noro-Moseley Partners, Access Venture Partners and Kyrus Tech among its venture backers.  

For Zscaler, the Red Canary deal follows last year’s $350 million acquisition of Israeli risk management platform play Avalor and added investments into its Risk360 risk-quantification dashboard and framework. 

Zscaler already ingests an eye-popping 500 billion transactions a day from its secure-web-gateway and zero-trust-network-access services and the idea is to add Red Canary capabilities to triage that telemetry, chase down alerts and, when necessary, put hands on keyboards to remediate live incidents. 

In a note announcing the acquisition plans, Zscaler chief executive Jay Chaudhry said Red Canary provides a “natural expansion” of his company’s foray into managed detection and response and threat intelligence.

“By integrating Red Canary with Zscaler, we will deliver to our customers the power of a fully integrated Zero Trust platform and AI-powered security operations,” he said.

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