Zscaler Acquires Edgewise Networks

Zscaler, Inc. (NASDAQ: ZS), the leader in cloud security, today announced it has acquired Edgewise Networks, a pioneer in securing application-to-application communications for public clouds and data centers. Edgewise Networks significantly improves the security of east-west communication by verifying the identity of application software, services and processes to achieve a zero trust environment which measurably reduces the attack surface and lowers the risk of application compromise and data breaches.

In today’s world of cloud and mobility, perimeter-based network security is becoming less relevant. Modern security should be focused on protecting users, applications and data. Zscaler secures connections between users and applications, based on business policies, without connecting them to the corporate network, known as zero trust network access. Edgewise broadens the Zscaler cloud-native platform and secures application-to-application communication to deliver stronger security in public clouds and data centers. 

Enterprises face significant threats from attacks that can freely move laterally within the network as east-west traffic. A single compromised server allows an attacker to harm multiple servers and applications on that network. Edgewise discovers individual applications and their legitimate communication patterns and, using AI and machine learning algorithms, automatically creates and enforces authorized communication to provide application segmentation. We believe this is a far superior approach than legacy network segmentation for security.

“Zscaler was founded to innovate security in a cloud-first world. We are disrupting legacy network security, reducing business risk, improving the user experience, and consolidating security point products for our customers,” said Jay Chaudhry, Chairman and CEO of Zscaler. “Edgewise is highly innovative technology that enables application segmentation without having to do traditional network segmentation which is often done with virtual firewalls. We are excited to welcome the Edgewise team to the Zscaler family.”

“We are proud to have made zero trust security achievable in complex, multi-cloud environments. Our core innovation is the use of software identity verification to simultaneously strengthen security and simplify operations,” said Peter Smith, CEO of Edgewise. “Edgewise automates the identity-based policies making it easy to reduce the attack surface across public cloud, multi-cloud, data center and even container environments. We are thrilled to join the Zscaler family and share our innovation with the global Zscaler customer base.”

Terms of the transaction were not disclosed. 

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 of the acquisition of Edgewise Networks to Zscaler’s product offerings and to our customers. 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 Edgewise Networks technology into our cloud platform and our ability to retain key employees of Edgewise Networks after the acquisition. Additional risks and uncertainties are set forth our most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) on March 4, 2020, 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.