Palo Alto Networks to buy attack surface management company Expanse in a deal valued at $800 million

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Shares of Palo Alto Networks Inc. were indicated up over 1% in premarket trading Wednesday, after the cybersecurity company announced an agreement to buy attack surface management company Expanse Inc. in a deal valued at up to $800 million. The terms of the deal include $670 million to be paid in cash and Palo Alto stock and about $130 million in replacement equity awards. The deal is expected to close in Palo Alto’s fiscal second quarter, which ends January. Palo Alto’s plan is to add the Expanse platform to its Cortex product suite. “By integrating Expanse’s attack surface management capabilities into Cortex after closing, we will be able to offer the first solution that combines the outside view of an organization’s attack surface with an inside view to proactively address all security threats,” said Palo Alto Chief Executive Nikesh Arora. “We believe this will be a game-changer in security operations.” Palo Alto’s stock has gained 5.0% year to date through Tuesday, while the S&P 500 has advanced 9.7%.
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