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

Rhea-AI Summary

Zscaler (NASDAQ: ZS) has completed its acquisition of Red Canary, marking a significant expansion in cloud security capabilities. Red Canary will initially operate as a separate business unit within Zscaler, leveraging Zscaler's resources while maintaining its innovative SOC capabilities.

The integration combines Red Canary's 10 years of threat intelligence and agentic AI technology with Zscaler's Data Fabric for Security, which processes 500 billion daily transactions through its Zero Trust Exchange platform. This merger aims to deliver one of the industry's most comprehensive SOC solutions, enabling more efficient security operations for both customers and partners.

The combined platform will unify Zero Trust capabilities with automated security operations, spanning communications, exposure management, and threat detection, investigation, and response. Red Canary will continue operating under the brand "Red Canary, a Zscaler company."

Positive

• Integration of Red Canary's 10-year threat intelligence database with Zscaler's extensive data platform processing 500 billion daily transactions
• Enhanced SOC capabilities through combination of Zero Trust and automated security operations
• Expanded service offering combining exposure management with AI-driven threat management
• Operational continuity maintained through separate business unit structure

Negative

• Integration risks and challenges in combining technologies and operations
• Potential employee retention challenges during integration period
• Execution risks in merging different security platforms and technologies

News Market Reaction

-1.85%

1 alert

-1.85% News Effect

On the day this news was published, ZS declined 1.85%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Combining Red Canary’s threat intelligence and automation with Zscaler’s rich data and unified SecOps platform will enable the industry’s most advanced SOC capabilities

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 Exchange^TM 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 Statements
This 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 Zscaler
Zscaler (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 Gonzalez
press@zscaler.com

FAQ

What is the strategic importance of Zscaler's acquisition of Red Canary?

The acquisition combines Red Canary's threat intelligence and AI capabilities with Zscaler's Zero Trust platform to deliver comprehensive SOC solutions, processing 500 billion daily transactions and enabling more efficient security operations.

How will Red Canary operate within Zscaler (NASDAQ: ZS) post-acquisition?

Red Canary will initially operate as a separate business unit within Zscaler, branded as 'Red Canary, a Zscaler company', maintaining operational continuity while benefiting from Zscaler's resources and scale.

What technologies are being combined in the Zscaler-Red Canary merger?

The merger combines Red Canary's agentic AI technology and 10 years of threat intelligence with Zscaler's Data Fabric for Security and Zero Trust Exchange platform to enhance threat detection and response capabilities.

What benefits will customers receive from the Zscaler-Red Canary integration?

Customers will gain access to enhanced SOC capabilities, faster threat detection and response times, and a unified security platform that combines Zero Trust with automated security operations for comprehensive protection.

How will the acquisition affect Zscaler's security operations solutions?

The acquisition will enhance Zscaler's security operations by integrating Red Canary's AI-powered threat detection and automated runbooks with Zscaler's platform, enabling faster and more precise threat detection, investigation, and response.