Cloud security leader Zscaler, Inc. (NASDAQ: ZS) has announced a definitive agreement to acquire Red Canary, a prominent Managed Detection and Response (MDR) provider, in a strategic move to enhance its AI-powered security operations capabilities.
The acquisition, expected to close in August 2025, will combine Zscaler’s massive security cloud infrastructure with Red Canary’s decade-long expertise in security operations to create a unified, AI-driven Security Operations Center (SOC) platform.
The acquisition represents Zscaler’s ambitious expansion into managed detection and response services, building upon its established Zero Trust Exchange platform.
CEO Jay Chaudhry emphasized that this move follows the company’s pattern of disrupting legacy security approaches, stating that the integration will deliver “the power of a fully integrated Zero Trust platform and AI-powered security operations” to customers.
The combined entity aims to address critical operational challenges that plague traditional security operations, including missed threat signals, incomplete analysis, and delayed response times.
By leveraging Zscaler’s extensive data processing capabilities—handling over 500 billion daily transactions—alongside Red Canary’s proven threat detection methodologies, the partnership promises to revolutionize how organizations detect, investigate, and respond to cyber threats.
Red Canary’s proven track record includes enabling customers to investigate threats up to 10 times faster with 99.6% accuracy while automating remediation workflows.
This operational efficiency, combined with Zscaler’s global intelligence from its ThreatLabz Security Research team, positions the unified platform to deliver unprecedented speed and precision in threat management.
Complementary Capabilities and Market Leadership
Both companies bring significant market credibility to the partnership.
Zscaler currently protects nearly 45% of Fortune 500 organizations through its cloud security platform, which spans over 150 data centers globally and represents the world’s largest in-line cloud security infrastructure.
The company has leveraged its massive data lake to develop advanced AI-driven solutions including Zscaler Digital Experience (ZDX) and Zscaler Exposure Management.
The company’s expertise spans critical security domains including endpoints, identity, network, and cloud workloads, providing comprehensive threat visibility across modern enterprise environments.
Brian Beyer, Red Canary’s CEO, highlighted the strategic value of combining high-fidelity signals with AI and behavioral analytics, noting that Zscaler’s global scale provides the resources and granular data necessary to fuel advanced AI development and threat intelligence capabilities.
Market Impact and Timeline
Red Canary has established itself as an industry leader, earning recognition as a Leader in the Forrester Wave for Managed Detection and Response for three consecutive years and appearing in the Gartner Market Guide for MDR for seven years running.
The acquisition is subject to standard regulatory approvals and closing conditions, with completion anticipated in August 2025.
The transaction reflects broader industry consolidation trends as cybersecurity companies seek to offer more comprehensive, AI-enhanced security solutions to address increasingly sophisticated threat landscapes.
This strategic combination addresses growing market demand for integrated security operations that can automatically detect, analyze, and respond to threats without requiring extensive manual intervention.
The unified platform is expected to help organizations reduce complexity while improving security outcomes through automated workflows and enhanced threat intelligence capabilities, positioning both companies to compete more effectively in the rapidly evolving cybersecurity market.
Find this Story Interesting! Follow us on LinkedIn and X to Get More Instant Updates.
 has announced a definitive agreement to acquire Red Canary, a prominent MDR.){kind=link}