Zscaler, a leading cloud security firm headquartered in San Jose, and Red Canary, a Denver-based specialist in managed detection and response (MDR), have entered into a definitive agreement for an acquisition.
Zscaler is known for operating one of the largest cloud security platforms globally, while Red Canary has built a reputation over the past decade for its high-accuracy threat detection and remediation capabilities.
The acquisition is set to enhance Zscaler’s vision of creating an AI-powered security operations centre (SOC) of the future. By integrating Red Canary’s MDR expertise with Zscaler’s AI-driven risk management and expansive data resources, the combined entity aims to deliver a next-generation SOC that can detect and respond to threats with unprecedented speed and precision. The financial details of the transaction have not been disclosed, but the deal is expected to close in August 2025, pending regulatory approval.
Zscaler protects nearly 45% of Fortune 500 companies and processes over 500bn transactions daily. Its platform includes services such as Zscaler Digital Experience (ZDX) and Exposure Management, both powered by AI. Red Canary, meanwhile, has been recognised as a Leader in the Forrester Wave™ for MDR and has appeared in the Gartner® Market Guide for MDR for seven consecutive years. The company helps streamline security operations through automation, enabling investigations to be completed up to 10 times faster with 99.6% accuracy.
The integration is expected to deliver substantial benefits to security teams by combining Red Canary’s strength in endpoint, identity, and cloud workload detection with Zscaler’s global threat intelligence and high-quality data. This combination is designed to help organisations reduce missed signals, conduct more complete threat analyses, and improve remediation outcomes.
This acquisition also builds upon Zscaler’s broader strategy to disrupt traditional security operations. Recent moves include its launch of Risk360, an AI-powered risk management service, and its acquisition of data fabric technology from Avalor.
Zscaler CEO Jay Chaudhry said, “With our innovative AI-powered risk management services like Risk360 and the acquired data fabric technology from Avalor, we are disrupting legacy security operations just like we did with our Zero Trust ExchangeTM platform. The proposed acquisition of Red Canary is a natural expansion of our capabilities into managed detection and response and threat intelligence to accelerate our vision of AI-powered SOC of the future. 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.”
Red Canary CEO Brian Beyer said, “For over 10 years, we’ve protected our customers by combining high-fidelity signals with agentic AI, behavioral analytics, and global threat intelligence—delivering fast, accurate, and high-quality threat detection and response. As part of Zscaler, we will elevate how IT and security teams address the rapidly shifting threat landscape with the strength of our combined technology and expertise. Zscaler’s global scale and reach provide the resources and granular data needed to fuel advanced AI, threat intelligence, and detection engineering, giving us a broader view of adversary behavior while enabling faster innovation across the board. Both companies share a relentless commitment to quality, execution, and delivering exceptional outcomes for our customers.”
Elsewhere in the Cyber space, Cerby, an identity security automation platform, has announced the close of a $40m Series B funding round as it seeks to accelerate its expansion in global markets.
The investment was led by DTCP, with participation from existing investors including Okta Ventures, Salesforce Ventures, and Two Sigma Ventures.
Founded in 2020, Cerby offers a cybersecurity platform focused on automating identity security for disconnected applications—those that typically fall outside the reach of traditional tools.
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