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Zscaler to Accelerate Innovation in AI-Powered Security Operations with Acquisition of Red Canary

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Zscaler (NASDAQ: ZS) has announced the acquisition of Red Canary, a leader in Managed Detection and Response (MDR). Red Canary's expertise enables customers to investigate threats up to 10 times faster with 99.6% accuracy through automated remediation. The integration will combine Zscaler's cloud security platform, which processes over 500 billion daily transactions, with Red Canary's threat detection capabilities to create an AI-powered Security Operations Center (SOC).

Red Canary, recognized as a Leader in Forrester Wave™ for MDR and featured in Gartner® Market Guide, will enhance Zscaler's ability to protect its customer base, which includes nearly 45% of Fortune 500 organizations. The acquisition is expected to close in August 2025, subject to regulatory approvals.

Zscaler (NASDAQ: ZS) ha annunciato l'acquisizione di Red Canary, un'azienda leader nel settore della Managed Detection and Response (MDR). L'esperienza di Red Canary consente ai clienti di indagare sulle minacce fino a 10 volte più rapidamente con una precisione del 99,6%, grazie a processi di risoluzione automatizzati. L'integrazione unirà la piattaforma di sicurezza cloud di Zscaler, che gestisce oltre 500 miliardi di transazioni giornaliere, con le capacità di rilevamento delle minacce di Red Canary per creare un Security Operations Center (SOC) potenziato dall'intelligenza artificiale.

Red Canary, riconosciuta come Leader nel Forrester Wave™ per MDR e presente nella Gartner® Market Guide, migliorerà la capacità di Zscaler di proteggere la propria clientela, che include quasi il 45% delle aziende Fortune 500. L'acquisizione dovrebbe concludersi ad agosto 2025, soggetta alle approvazioni regolamentari.

Zscaler (NASDAQ: ZS) ha anunciado la adquisición de Red Canary, líder en Managed Detection and Response (MDR). La experiencia de Red Canary permite a los clientes investigar amenazas hasta 10 veces más rápido con una precisión del 99,6% mediante la remediación automatizada. La integración combinará la plataforma de seguridad en la nube de Zscaler, que procesa más de 500 mil millones de transacciones diarias, con las capacidades de detección de amenazas de Red Canary para crear un Centro de Operaciones de Seguridad (SOC) potenciado por inteligencia artificial.

Red Canary, reconocida como líder en Forrester Wave™ para MDR y destacada en la Gartner® Market Guide, mejorará la capacidad de Zscaler para proteger su base de clientes, que incluye casi el 45% de las organizaciones Fortune 500. Se espera que la adquisición se complete en agosto de 2025, sujeta a aprobaciones regulatorias.

Zscaler (NASDAQ: ZS)는 Managed Detection and Response(MDR) 분야의 선두주자인 Red Canary를 인수했다고 발표했습니다. Red Canary의 전문성 덕분에 고객은 자동화된 대응을 통해 최대 10배 빠르게 위협을 조사할 수 있으며, 정확도는 99.6%에 달합니다. 이번 통합을 통해 매일 5천억 건 이상의 트랜잭션을 처리하는 Zscaler의 클라우드 보안 플랫폼과 Red Canary의 위협 탐지 기능이 결합되어 인공지능 기반의 보안 운영 센터(SOC)가 구축될 예정입니다.

Forrester Wave™ MDR 부문에서 리더로 인정받고 Gartner® Market Guide에 소개된 Red Canary는 포춘 500대 기업 중 약 45%를 포함한 Zscaler의 고객 보호 역량을 강화할 것입니다. 이번 인수는 규제 승인 조건에 따라 2025년 8월에 완료될 예정입니다.

Zscaler (NASDAQ : ZS) a annoncé l'acquisition de Red Canary, un leader dans le domaine de la Managed Detection and Response (MDR). L'expertise de Red Canary permet aux clients d'enquêter sur les menaces jusqu'à 10 fois plus rapidement avec une précision de 99,6 % grâce à une remédiation automatisée. L'intégration combinera la plateforme de sécurité cloud de Zscaler, qui traite plus de 500 milliards de transactions quotidiennes, avec les capacités de détection des menaces de Red Canary pour créer un Centre des Opérations de Sécurité (SOC) alimenté par l'intelligence artificielle.

Red Canary, reconnue comme Leader dans le Forrester Wave™ pour le MDR et figurant dans le Gartner® Market Guide, renforcera la capacité de Zscaler à protéger sa clientèle, qui comprend près de 45 % des entreprises du Fortune 500. L'acquisition devrait être finalisée en août 2025, sous réserve des approbations réglementaires.

Zscaler (NASDAQ: ZS) hat die Übernahme von Red Canary, einem führenden Unternehmen im Bereich Managed Detection and Response (MDR), bekannt gegeben. Die Expertise von Red Canary ermöglicht es Kunden, Bedrohungen bis zu zehnmal schneller mit einer Genauigkeit von 99,6 % durch automatisierte Behebung zu untersuchen. Die Integration wird die Cloud-Sicherheitsplattform von Zscaler, die täglich über 500 Milliarden Transaktionen verarbeitet, mit den Bedrohungserkennungsfähigkeiten von Red Canary verbinden, um ein KI-gestütztes Security Operations Center (SOC) zu schaffen.

Red Canary, als Leader im Forrester Wave™ für MDR anerkannt und im Gartner® Market Guide gelistet, wird Zscalers Fähigkeit verbessern, seine Kundenbasis zu schützen, zu der fast 45 % der Fortune-500-Unternehmen gehören. Die Übernahme soll im August 2025 abgeschlossen werden, vorbehaltlich behördlicher Genehmigungen.

Positive
  • Integration will enable 10x faster threat investigation with 99.6% accuracy
  • Zscaler processes over 500 billion daily transactions, providing extensive data for AI-driven solutions
  • Zscaler protects nearly 45% of Fortune 500 organizations
  • Red Canary is recognized as a Leader in Forrester Wave and featured in Gartner Market Guide
  • Combination will enhance automated remediation capabilities and security workflows
Negative
  • Acquisition is subject to regulatory approvals, which could delay or prevent completion
  • Integration challenges may affect service delivery and customer retention
  • Potential risks in retaining key Red Canary employees post-acquisition

Insights

Zscaler's acquisition of Red Canary strategically enhances its AI security capabilities, combining zero-trust architecture with advanced threat detection.

Zscaler's planned acquisition of Red Canary represents a strategic expansion into the high-growth Managed Detection and Response (MDR) market. This move directly complements Zscaler's Zero Trust Exchange platform by adding Red Canary's specialized threat detection capabilities, which have demonstrated impressive metrics - enabling customers to investigate threats 10x faster with 99.6% accuracy.

The integration creates significant technological synergies. Zscaler processes over 500 billion daily transactions through its security cloud, generating massive data sets that can power advanced AI systems. Red Canary brings proven expertise in threat detection and automated remediation workflows. Together, they can deliver an AI-powered Security Operations Center (SOC) that combines automated intelligence with human expertise.

This acquisition follows Zscaler's pattern of strategic expansions, coming after their acquisition of Avalor's data fabric technology. The company is systematically building an integrated security platform that addresses multiple aspects of the security lifecycle - from prevention (Zero Trust) to detection and response (MDR).

Strategically, this positions Zscaler to compete more effectively in the evolving cybersecurity landscape where standalone point solutions are giving way to integrated platforms. By adding Red Canary's capabilities, Zscaler strengthens its value proposition to enterprise customers, particularly the Fortune 500 companies that make up nearly 45% of its customer base.

The transaction is expected to close in August 2025, pending regulatory approvals. While financial terms weren't disclosed, the acquisition appears to be a calculated move to capture more security spend from existing customers while expanding Zscaler's total addressable market.

The Foundation Built from the Zscaler Zero Trust Exchange Platform and Data Fabric Together with Red Canary’s Threat Detection and Response Capabilities Will Transform Security Operations with Agentic AI

SAN JOSE, Calif., May 27, 2025 (GLOBE NEWSWIRE) -- Zscaler, Inc. (NASDAQ: ZS), the leader in cloud security, today announced it has signed a definitive agreement to acquire Red Canary, a recognized leader in Managed Detection and Response (MDR). With over 10 years of expertise in security operations (SecOps), Red Canary has enabled its extensive customer base to investigate threats up to 10 times faster1 with 99.6% accuracy, while streamlining workflows through automated remediation. Combined with Zscaler’s massive amounts of high-quality data—derived from the world's largest security cloud—and global intelligence from its ThreatLabz Security Research team, the combination will deliver a unified, agentic Security Operations Center (SOC) that combines AI-driven workflows with human expertise. These complementary capabilities will redefine how businesses detect, respond to, and mitigate modern cyber threats.

“With our innovative AI-powered risk management services like Risk360 and the acquired data fabric technology from Avalor, we are disrupting legacy security operations just like we did with our Zero Trust ExchangeTM platform,” said Jay Chaudhry, CEO, Chairman, and Founder of Zscaler. “The proposed acquisition of Red Canary is a natural expansion of our capabilities into managed detection and response and threat intelligence to accelerate our vision of AI-powered SOC of the future. By integrating Red Canary with Zscaler, we will deliver to our customers the power of a fully integrated Zero Trust platform and AI-powered security operations.”

Protecting nearly 45% of the Fortune 500 organizations, Zscaler has established over 15 years of leadership operating the world's largest cloud security platform which processes over 500 billion daily transactions. It has leveraged its massive, high-quality data lake to accelerate the development of advanced AI-driven solutions, like Zscaler Digital Experience (ZDX) and Zscaler Exposure Management. A proven innovator in MDR, Red Canary has been recognized as a Leader in the Forrester Wave™: Managed Detection and Response for the third consecutive year and featured in the Gartner® Market Guide for MDR for the seventh year in a row. Within the SOC, Red Canary plays a crucial role by helping security teams automate remediation workflows, resulting in greater efficiency and improved security outcomes.

By bringing together Zscaler’s AI-powered Zero Trust platform with Red Canary’s domain expertise in threat detection and response—spanning endpoints, identity, network, and cloud workloads—this transaction is uniquely positioned to address the operator pain points that often lead to missed signals, incomplete threat analysis, and increased vulnerability to undetected threats. The integration of Zscaler and Red Canary will better enable security teams to detect, triage, investigate, and respond to threats with greater speed and efficiency, helping organizations confidently and precisely tackle modern security challenges.

“For over 10 years, we’ve protected our customers by combining high-fidelity signals with agentic AI, behavioral analytics, and global threat intelligence—delivering fast, accurate, and high-quality threat detection and response,” said Brian Beyer, CEO of Red Canary. “As part of Zscaler, we will elevate how IT and security teams address the rapidly shifting threat landscape with the strength of our combined technology and expertise. Zscaler’s global scale and reach provide the resources and granular data needed to fuel advanced AI, threat intelligence, and detection engineering, giving us a broader view of adversary behavior while enabling faster innovation across the board. Both companies share a relentless commitment to quality, execution, and delivering exceptional outcomes for our customers.”

The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close in August 2025.

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1 10x faster on average compared to traditional security approaches


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. 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 our ability to successfully integrate Red Canary technology into our cloud platform and our ability to retain key employees of Red Canary after the acquisition.

Additional risks and uncertainties are set forth in our most recent Annual Report on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) on March 10, 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 protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Distributed across more than 150 data centers globally, the SASE-based Zero Trust Exchange is the world’s largest in-line cloud security platform.

Zscaler™ and the other trademarks listed at https://www.zscaler.com/legal/trademarks are either (i) registered trademarks or service marks or (ii) trademarks or service marks of Zscaler, Inc. in the United States and/or other countries. Any other trademarks are the properties of their respective owners.

Media Contact:
Pavel Radda
press@zscaler.com

Investor Relations Contact:
Ashwin Kesireddy
ir@zscaler.com


FAQ

What is the expected closing date for Zscaler's acquisition of Red Canary?

The acquisition is expected to close in August 2025, subject to customary closing conditions and regulatory approvals.

How will the Red Canary acquisition benefit Zscaler's security capabilities?

The acquisition will enable 10x faster threat investigation with 99.6% accuracy, combining Zscaler's cloud security platform with Red Canary's threat detection and response capabilities for enhanced AI-powered security operations.

What percentage of Fortune 500 companies does Zscaler currently protect?

Zscaler currently protects nearly 45% of Fortune 500 organizations.

How many daily transactions does Zscaler's cloud security platform process?

Zscaler's cloud security platform processes over 500 billion daily transactions.

What recognition has Red Canary received in the cybersecurity industry?

Red Canary has been recognized as a Leader in the Forrester Wave for MDR for three consecutive years and featured in the Gartner Market Guide for MDR for seven years in a row.
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