Red Canary
2025
Why
Added managed detection and response and security operations capabilities.
Impact
Contributed $141 million of ARR and about 5 points of revenue growth in fiscal 2026.
Outcome
Operating as Red Canary, a Zscaler company.
Zscaler, Inc.
Cloud SecurityFounded 2007- HQ today: San Jose, California, United States
Reviewed by Swet Parvadiya
Company data updated: October 2026
Acquisitions
Zscaler Acquisitions
4
Major Deals Covered
$350M
Disclosed Deal Value
What are Zscaler's biggest acquisitions?
Zscaler's largest disclosed acquisition here is Avalor for $350M in 2024. This page covers 4 major deals from 2023 to 2025, each with its price where disclosed and the reason behind it.
- Major deals covered
- 4
- Largest deal
- Avalor ($350M)
- First deal
- 2023
- Most recent
- 2025
| Company | Year | Price | Purpose |
|---|---|---|---|
| Canonic Security | 2023 | Undisclosed | Added SaaS supply chain security for third-party apps and integrations connected to SaaS environments. |
| Avalor | 2024 | $350.0M | Added a security data fabric that aggregates findings from many tools to prioritize risk. |
| Airgap Networks | 2024 | Undisclosed | Added agentless segmentation for branch and campus networks to limit lateral movement. |
| Red Canary | 2025 | Undisclosed | Added managed detection and response and security operations capabilities. |
- What companies has Zscaler bought?
- Major acquisitions by Zscaler documented here include Avalor (2024), Red Canary (2025), Airgap Networks (2024) and Canonic Security (2023).
- What is Zscaler's most recent acquisition?
- The most recent Zscaler acquisition documented here is Red Canary, in 2025.
Avalor
2024
$350M
Why
Added a security data fabric that aggregates findings from many tools to prioritize risk.
Impact
Underpins Zscaler's risk management and exposure management products.
Outcome
Integrated.
Airgap Networks
2024
Why
Added agentless segmentation for branch and campus networks to limit lateral movement.
Impact
Extended zero trust controls to branch and OT environments.
Outcome
Integrated.
Canonic Security
2023
Why
Added SaaS supply chain security for third-party apps and integrations connected to SaaS environments.
Impact
Folded into Zscaler's data protection offering.
Outcome
Integrated.
Zscaler, Inc.'s Growth & Acquisition Strategy
Zscaler is trying to grow beyond seat-based internet and private access by selling data security, workload and branch connectivity, security operations through Red Canary, and security for AI applications and agents. It also uses Z-Flex, a flexible purchasing program, to move customers onto more modules. Investors watch ARR growth excluding acquisitions, net new ARR, free cash flow, and how it holds up against bundled offers from larger rivals.
How Zscaler, Inc. Makes Money
Zscaler earns almost all of its revenue from subscriptions to cloud security services, usually sold on annual or multi-year contracts and priced by users, workloads, or modules. Core products are Zscaler Internet Access (secure web gateway), Zscaler Private Access (zero trust access to internal apps), and Zscaler Digital Experience (performance monitoring), with data protection, workload security, security operations, and AI security sold on top. Most sales go through channel partners and service providers. Deferred revenue was $2.926 billion at July 31, 2026, up 19%. Red Canary, bought in 2025, brought a managed detection and response business that contributed $141 million of ARR at the end of fiscal 2026.
Zscaler Acquisitions FAQ
Why did Zscaler acquire AI security firm Avalor for $350 million in 2024?
In March 2024, Zscaler acquired Avalor for $350 million to integrate its Data Fabric for Security, ingesting data across hundreds of security tools to power AI-driven vulnerability management.
What was the strategic acquisition of Airgap Networks in 2024?
In April 2024, Zscaler acquired Airgap Networks to deliver agentless Zero Trust microsegmentation for enterprise campus local area networks (LANs) and critical factory OT environments.
Why did Zscaler acquire Canonic Security in 2023?
Zscaler acquired Canonic Security to protect enterprises against third-party SaaS supply chain risks, monitoring rogue browser extensions and API integrations that connect to corporate Google Workspace and Microsoft 365.
What was the acquisition of Edgewise Networks in 2020?
Zscaler acquired Edgewise Networks to enhance microsegmentation, verifying software identity to stop east-west application-to-application lateral attack progression in public clouds.
How did the acquisition of Trustdome expand Zscaler's capabilities in 2021?
Zscaler acquired Trustdome to enter Cloud Infrastructure Entitlement Management (CIEM), managing and enforcing least-privilege permissions across complex AWS, Azure, and Google Cloud environments.
What was the acquisition of Cloudneeti in 2020?
Zscaler acquired Cloudneeti to launch Zscaler Posture Control (CSPM), ensuring enterprise cloud configurations automatically adhere to industry data security frameworks (SOC 2, PCI, HIPAA).
How does Zscaler integrate acquired software technologies?
Zscaler tightly integrates acquired technology directly into the Zero Trust Exchange single-agent architecture, refusing to bundle clunky standalone third-party software products.
What is Zscaler's ongoing M&A philosophy?
Zscaler avoids acquiring declining legacy hardware vendors, focusing strictly on innovative early-stage startups that bring cutting-edge AI data fabrics, microsegmentation, and cloud protection tech.
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