SANTA CLARA, Calif.,
March 31, 2020 /PRNewswire/ -- Palo
Alto Networks (NYSE: PANW), the global cybersecurity leader, today
announced that it has entered into a definitive agreement to
acquire CloudGenix, Inc., an industry-leading cloud-delivered
SD-WAN provider. Under the terms of the agreement, Palo Alto
Networks will pay approximately $420
million in cash to acquire CloudGenix, subject to
adjustments. The acquisition is expected to close during Palo Alto
Networks' fiscal fourth quarter, subject to the satisfaction of
regulatory and customary closing conditions.
As applications continue to move from corporate data centers to
the cloud and SaaS, and users require secure access to applications
from anywhere in the world, organizations are struggling to manage
access for the distributed workforce. Current remote access
solutions for the branch and retail offices are complex, costly and
often insecure. To support the modern workforce, organizations need
access to all applications from all locations, delivered via a
global network as a service for accelerated access, and with
integrated world-class security from the cloud. This is what the
industry calls "secure access service edge," or SASE.
Palo Alto Networks Prisma™ Access is the industry's most
comprehensive SASE platform, delivering a global cloud network with
cloud-delivered security for all users. With the proposed
acquisition, Palo Alto Networks will integrate CloudGenix's
cloud-managed SD-WAN products to accelerate the intelligent
onboarding of remote branches and retail stores into Prisma
Access. This combination will extend the breadth of the
Prisma Access SASE platform, address network and security
transformation requirements, and accelerate the shift from SD-WAN
to SASE.
CloudGenix has attracted approximately 250 customers, many of
which are in the Fortune 1000 and include companies in healthcare,
retail, manufacturing, finance, banking, tech and hospitality.
CloudGenix was named a 2020 Gartner Peer Insights Customers' Choice
for WAN Edge Infrastructure. CloudGenix co-founders, Kumar Ramachandran, Mani
Ramasamy and Venkataraman
Anand, have agreed to join Palo Alto Networks.
Quotes:
"As the enterprise becomes more distributed, customers want
agile solutions that just work, and that applies to both security
and networking. Upon the close of the transaction, the combined
platform will provide customers with a complete SASE offering that
is best-in-class, easy to deploy, cloud-managed, and delivered as a
service."
- Nikesh Arora, chairman and CEO,
Palo Alto Networks
"CloudGenix's vision has been to revolutionize branch offices
through cloud-delivered Autonomous WANs. With CloudGenix,
enterprises gain cloud-scale economics for the branch office with
the freedom to use any WAN, any cloud, and best-of-breed
infrastructure services. We thank our customers for making us an
industry leader in enterprise SD-WAN. By joining forces with Palo
Alto Networks, we will accelerate our ability to serve customers
and partners in their network and security transformation."
- Kumar Ramachandran, co-founder
and CEO, CloudGenix
Conference Call Information
Palo Alto Networks will host a conference call for analysts and
investors to discuss the acquisition today at 5:00 p.m. Eastern time/2:00 p.m. Pacific time. Open to the public,
investors may access the call by dialing 1-800-263-0877 or
1-720-543-0197 and using conference ID 3166616. A live audio
webcast of the conference call will also be accessible from the
"Investors" section of our website at
investors.paloaltonetworks.com. Following the webcast, an archived
version will be available on our website for one year. A telephonic
replay of the call will be available three hours after the call,
will run for ten days, and may be accessed by dialing
1-888-203-1112 or 1-719-457-0820 and entering the passcode
3166616.
About Palo Alto Networks
Palo Alto Networks, the global cybersecurity leader, is shaping
the cloud-centric future with technology that is transforming the
way people and organizations operate. Our mission is to be the
cybersecurity partner of choice, protecting our digital way of
life. We help address the world's greatest security challenges with
continuous innovation that seizes the latest breakthroughs in
artificial intelligence, analytics, automation, and orchestration.
By delivering an integrated platform and empowering a growing
ecosystem of partners, we are at the forefront of protecting tens
of thousands of organizations across clouds, networks, and mobile
devices. Our vision is a world where each day is safer and more
secure than the one before. For more information, visit
www.paloaltonetworks.com.
Palo Alto Networks, Prisma, and the Palo Alto Networks logo are
trademarks of Palo Alto Networks, Inc. in the United States and in jurisdictions
throughout the world. All other trademarks, trade names, or service
marks used or mentioned herein belong to their respective
owners.
Forward-Looking Statements
This press release contains "forward-looking" statements that
are based on our management's beliefs and assumptions and on
information currently available to management. Such forward-looking
statements include statements regarding our intention to acquire
CloudGenix, Inc., expectations regarding the timing of when the
acquisition will be completed and our integration efforts after we
close the transaction, the expected benefits of the acquisition of
CloudGenix to us and to our customers, and the expected impact of
the acquisition on our offerings. These forward-looking statements
are subject to the safe harbor provisions created by the Private
Securities Litigation Reform Act of 1995. There are a significant
number of factors that could cause actual results to differ
materially from statements made in this press release, such as
risks associated with new product and subscription releases,
including our ability to successfully integrate CloudGenix into our
product offerings; risks associated with managing our growth; our
ability as an organization to successfully integrate CloudGenix and
acquire and integrate other companies, products or technologies in
a successful manner; the risks associated with new products and
subscription and support offerings, including the discovery of
software bugs; our ability to attract and retain new customers;
delays in the development or release of new subscription offerings,
or the failure to timely develop and achieve market acceptance of
new products and subscriptions as well as existing products and
subscription and support offerings; rapidly evolving technological
developments in the market for network security products and
subscription and support offerings; length of sales cycles; the
coronavirus' effect on our supply chain, our ability to ship
products, complete the transaction in a timely manner, or execute
on integration plans; and general market, political, economic and
business conditions. Additional risks and uncertainties are
included under the captions "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations," in our quarterly report on Form 10-Q filed with the
Securities and Exchange Commission ("SEC") on February 25, 2020, which is available on our
website at investors.paloaltonetworks.com and on the SEC's website
at www.sec.gov. Additional information will also be set forth in
other filings that we make with the SEC from time to time. All
forward-looking statements in this press release are based on
information available to us as of the date hereof, and we do not
assume any obligation to update the forward-looking statements
provided to reflect events that occur or circumstances that exist
after the date on which they were made or to update the reasons why
actual results could differ materially from those anticipated in
the forward-looking statements, even if new information becomes
available in the future.
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SOURCE Palo Alto Networks, Inc.