Palo Alto Networks to Buy RedLock Cloud Security for $173 Million -

Palo Alto Networks plans to acquire RedLock, a cloud security and compliance platform provider, for approximately $173 million. The transaction is expected to close during Palo Alto Networks' fiscal first quarter of 2019.

In addition, RedLock co-founders Varun Badhwar and Gaurav Kumar will join Palo Alto Networks, according to a prepared statement.

RedLock helps organizations manage cloud security and compliance risks across Amazon Web Services (AWS), Microsoft Azure and Google Cloud environments. It offers the RedLock Cloud 360 platform, which enables an organization to use artificial intelligence (AI) to correlate disparate security data to detect threats across its entire public cloud environment.

Furthermore, RedLock offers the CloudView partner program to MSSPs, managed service providers (MSPs), cloud services providers (CSPs) and other technology resellers. CloudView partners can leverage RedLock Cloud 360 to automate public cloud protection and provide cloud visibility, alerting, remediation and compliance reporting.

What Does the RedLock Acquisition Mean for Palo Alto Networks?

Palo Alto Networks intends to release a single offering that includes the following RedLock technologies:

Advanced threat detection.

Cloud security analytics.

Continuous security.

Compliance monitoring.

The new offering will enable security teams to leverage automated, real-time remediation and reports that highlight an organization's cloud risks, according to Palo Alto Networks. It also will include technologies from Evident.io, a public cloud security and compliance solutions provider that Palo Alto Networks acquired in March for approximately $300 million.

Palo Alto Networks expects the new RedLock-Evident joint offering to be available next year.

A Closer Look at Palo Alto Networks and the Global Cloud Security Market

Palo Alto Networks currently serves more than 6,000 cloud customers globally. The company reported $658.1 million in total revenue in the fourth quarter of fiscal year 2018, an increase of 29 percent year over year, and looks poised to capitalize on the rising demand for cloud security solutions.

The global cloud security market is projected to expand at a compound annual growth rate (CAGR) of 13.9 percent between 2018 and 2024, according to industry analyst Grand View Research. Also, this sector could be worth more than $12.6 billion by 2024.