Zscaler to Acquire Red Canary for AI-Powered Security

Zscaler has signed a definitive agreement to acquire Red Canary, combining the cloud security platform provider’s data capabilities with the managed detection and response specialist’s threat hunting expertise. 

The acquisition brings together Zscaler’s processing capacity of 500 billion daily transactions with Red Canary’s track record of investigating threats up to 10 times faster with 99.6% accuracy. Red Canary serves customers across endpoint, identity, network and cloud workload security domains, whilst Zscaler protects nearly 45% of Fortune 500 organisations through its Zero Trust Exchange platform.

“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 Exchange platform,” says 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.”

Red Canary brings decade of managed detection expertise to Zscaler platform

Red Canary has operated in the managed detection and response (MDR) market for over 10 years, earning recognition as a Leader in the Forrester Wave for Managed Detection and Response for three consecutive years. The company has also featured in the Gartner Market Guide for MDR for seven consecutive years.

The firm’s approach combines behavioural analytics with threat intelligence to automate remediation workflows within security operations centres. This capability addresses what both companies identify as common operational challenges including missed threat signals, incomplete analysis and delayed response times that leave organisations vulnerable to undetected attacks.

Zscaler operates what it describes as the world’s largest cloud security platform, built over 15 years of market presence. The company has leveraged this data foundation to develop AI-driven solutions including Zscaler Digital Experience and Zscaler Exposure Management, alongside its recent acquisition of data fabric technology from Avalor.

Red Canary CEO highlights combined threat intelligence capabilities

The integration strategy focuses on combining Zscaler’s global data collection with Red Canary's detection engineering capabilities. Zscaler’s ThreatLabz Security Research team provides threat intelligence that will integrate with Red Canary's existing detection methodologies across multiple security domains.

“For over 10 years, we’ve protected our customers by combining high-fidelity signals with agentic AI, behavioural analytics and global threat intelligence – delivering fast, accurate and high-quality threat detection and response,” says 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.”

The combined entity aims to address operational pain points that security teams encounter when managing threat detection and response workflows. These include the challenge of processing large volumes of security alerts, conducting thorough threat analysis, and implementing timely remediation measures across diverse IT environments.

On completion of the deal, Red Canary’s customer base will gain access to Zscaler’s global infrastructure and data processing capabilities, whilst Zscaler customers will benefit from Red Canary’s MDR services. The integration plans to deliver unified workflows that combine automated threat detection with human security expertise.

Zscaler targets August completion for regulatory approval process

The transaction requires standard regulatory approvals and other customary closing conditions before completion. Both companies expect to finalise the acquisition in August 2025, though the purchase price remains undisclosed.

Zscaler’s acquisition strategy has included previous purchases of security technology companies to expand its platform capabilities. The Red Canary acquisition represents the company’s entry into the managed detection and response market, complementing its existing Zero Trust architecture and AI-powered risk management services.

“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 behaviour whilst enabling faster innovation across the board,” says Brian. “Both companies share a relentless commitment to quality, execution and delivering exceptional outcomes for our customers.”

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