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Zscaler Completes Acquisition of Red Canary to Accelerate Innovations in Agentic AI-driven Security Operations

1. Zscaler completed its acquisition of Red Canary, enhancing security solutions. 2. Red Canary will operate as a separate unit initially, under Zscaler's umbrella. 3. Combined expertise aims to streamline threat detection and security operations. 4. Integration of AI technology expected to improve response times to cyber threats. 5. Zscaler's platform will now unify security operations for better efficiency.

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Why Bullish?

The acquisition of Red Canary strengthens Zscaler's offerings in a competitive market, similar to prior successful acquisitions that led to growth, like Cisco's acquisition of Duo Security, which boosted their cybersecurity portfolio significantly.

How important is it?

The acquisition directly enhances Zscaler's product line and market reach, making it highly relevant for investors and stakeholders.

Why Long Term?

While initial impacts might be immediate, the true benefits from integration and market positioning will unfold over several quarters as customers adopt new solutions.

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CSCOPANWFTNT
SAN JOSE, Calif., Aug. 01, 2025 (GLOBE NEWSWIRE) -- Zscaler, Inc. (NASDAQ: ZS), the leader in cloud security, today announced it has completed its acquisition of Red Canary. Together, the companies will deliver unified Security Operations, combining sophisticated exposure management with agentic AI-driven threat management. To ensure continuity for its customers, Red Canary will initially operate as a separate business unit within Zscaler. It will benefit from Zscaler's scale and resources while continuing to innovate its advanced Security Operations Center (SOC) capabilities. Zscaler will integrate Red Canary’s agentic AI technology with its Data Fabric for Security to deliver one of the industry’s most comprehensive SOC solutions—enabling customers to run their own SOCs more efficiently and allowing partners to offer powerful managed SOC services based on this foundation. “We’re delighted to officially welcome Red Canary to the Zscaler family,” said Jay Chaudhry, CEO, Chairman, and Founder of Zscaler. “By combining Red Canary’s domain expertise in advanced SOC operations with detections, signals, and context from 500 billion daily transactions in the Zscaler Zero Trust ExchangeTM platform, we will deliver solutions that help customers strengthen their cyber defenses and efficiently advance their security operations. Following the successful integration, Zscaler will offer the industry’s most robust security platform that combines the power of Zero Trust with automated security operations, and provides protection that spans communications, exposure management, and threat detection, investigation, and response.” Zscaler’s security operations solutions streamline detection and remediation of exposures and threats. The 10 years of threat intelligence Red Canary has amassed, along with its automated runbooks and agentic AI operations, will yield combined solutions that enable organizations to confidently detect, triage, investigate, and respond to cyber threats faster and with greater precision. “This is a massive step forward in our mission to improve security operations, not just for our customers, but for the entire cybersecurity community,” said Brian Beyer, CEO of Red Canary. “As part of Zscaler, we’re bringing together Red Canary’s proven AI-powered threat detection and deep security operations expertise with Zscaler’s leading zero trust platform. Together, we will empower customers and partners to find and stop threats faster—dramatically reducing investigation and response times. By simplifying and unifying security operations, we’re setting a new standard for protecting against threats in an ever-changing landscape." Following the close of the acquisition, Red Canary will be branded as Red Canary, a Zscaler company. Forward-Looking StatementsThis press release contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. These forward-looking statements include the expected benefits and impacts of the proposed acquisition to Zscaler and its customers and plans regarding Red Canary’s capabilities. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. A significant number of factors could cause actual results to differ materially from statements made in this press release, including those factors related to Zscaler’s ability to successfully integrate Red Canary technology into our cloud platform, the potential impact of the acquisition to the existing Red Canary business and the retention of Red Canary’s employees. Additional risks and uncertainties are set forth in our most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) on May 29, 2025, which is available on our website at ir.zscaler.com and on the SEC's website at www.sec.gov. Any forward-looking statements in this release are based on the limited information currently available to Zscaler as of the date hereof, which is subject to change, and Zscaler will not necessarily update the information, even if new information becomes available in the future. About ZscalerZscaler (NASDAQ: ZS) accelerates digital transformation so customers can be more agile, efficient, resilient, and secure. The Zscaler Zero Trust Exchange™ platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Distributed across more than 160 data centers globally, the SASE-based Zero Trust Exchange™ is the world’s largest in-line cloud security platform. Media Contact:Nick Gonzalezpress@zscaler.com

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