ZScaler acquires Red Canary for boost in AI-driven security operations

Zscaler announced Tuesday its intention to acquire Red Canary, a company known for Managed Detection and Response (MDR) services, to boost its ability to integrate artificial intelligence, automation and human expertise into its security offerings. 

The acquisition is positioned around the convergence of Zscaler’s data-driven, AI-centric cloud security and Red Canary’s decade of operational expertise in MDR. Zscaler’s executive leadership emphasizes the blending of large-scale data intelligence and automated, agentic Security Operations Centers (SOCs) with the capabilities of ThreatLabz, its security research division.

“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,” Jay Chaudhry, CEO and founder of Zscaler, said in a press release. “By integrating Red Canary with Zscaler, we will deliver to our customers the power of a fully integrated Zero Trust platform and AI-powered security operations.”

Red Canary, with over a decade of experience in MDR and security operations, is known for accelerating threat investigation and automating remediation at scale. Its core value proposition focuses on swift, accurate threat detection, claiming up to a tenfold reduction in investigation time and an accuracy rate of 99.6% across extensive customer deployments.

Zscaler brings scale and data depth to the equation, protecting nearly 45% of Fortune 500 enterprises. Its cloud security platform handles more than 500 billion transactions per day, forming a substantial data lake used to fuel AI-based security products and digital experience tools.

By joining Zscaler, Red Canary anticipates access to a broader array of security data, including that processed on Zscaler’s Zero Trust Exchange and exposure management systems. The integration aims to enhance the speed and accuracy of threat detection, further leveraging cross-domain insights from endpoints, networks, cloud workloads, and identity systems.

“We’re about to gain access to 500 billion daily transactions of data and threat intelligence processed on Zscaler’s Zero Trust Exchange and exposure management data,” Brian Beyer, Red Canary CEO and co-founder, said in a release. “This will significantly enhance our ability to detect threats faster and more accurately. The innovation this will bring is going to be incredible.”

The deal reflects a growing trend in cybersecurity toward consolidation and integration, as enterprises are seeking to centralize their data, automate detection and response, and use AI to offset talent shortages.

Earlier this month, Proofpoint acquired Germany-based Hornetsecurity for $1 billion. In March, Google announced plans to acquire Israeli-founded cloud security startup Wiz for $32 billion, while Palo Alto Networks revealed its intention in April to purchase AI-focused startup Protect AI.

Terms of the deal were not disclosed. The agreement, subject to regulatory approvals, is expected to close in August 2025.