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Confirmed: Palo Alto Networks buys Dig Security, sources say for $400M

We reported in September that Palo Alto was getting ready to make yet more security acquisitions out of Israel, specifically of Dig Security and Talon. Today, some confirmation of one of those has arrived: The U.S. security giant said it would be acquiring Dig. The company is not disclosing the financial terms but our sources say it is in the region of $400 million.

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But movements in that industry — investments, M&A, expansions, product launches — have in many ways ground to a halt in the wake of current political events.

“As companies build AI-enabled applications, there will be a substantial increase in the amount of data transferred to the cloud,” said Lee Klarich, CPO for Palo Alto Networks, in a statement.

The announcement of our intent to join forces with Dig reinforces our longstanding commitment to our team in Israel and to continue growing our footprint with its talented and dedicated cybersecurity professionals.”

We developed an award-winning DSPM solution to alleviate this strain by providing a centralized offering to monitor and manage the security of these cloud data stores,” added Dan Benjamin, CEO and co-founder of Dig.

“For end customers, security is still a big business risk, so budgets are back in action and we’re seeing sales picking up in Q3 and Q4,” a source told us when we first got wind of the deal.

Other examples of M&A in the space, specifically around Israeli cybersecurity companies, include CrowdStrike acquiring security startup Bionic for $350 million, and IBM buying Polar earlier this year for $60 million — a deal IBM made, we understand, partly in response to Palo Alto buying Cider Security in 2022.

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