Zscaler to Acquire Red Canary in Major Cybersecurity Deal

San Jose, California — Zscaler announced Tuesday that it has reached a deal to acquire Red Canary, a prominent player in managed detection and response (MDR). This move aims to enhance Zscaler’s capabilities in threat detection and response, accelerating its services for customers and partners. The acquisition is expected to be finalized in August, though financial terms were not disclosed.

Founded in 2013, Red Canary has established itself as a leader in MDR, offering round-the-clock threat monitoring, which has gained significant traction in recent years. According to Zscaler’s news release, Red Canary has been ranked as a “leader” in the Forrester Wave report for the last three years, recognized for its informative threat intelligence reports and services.

The acquisition will modernize Zscaler’s Security Operations Center (SOC) and is viewed as a “natural expansion” of the company’s existing zero-trust security framework. Zscaler Founder and CEO Jay Chaudhry emphasized this in the release, stating that the merger will accelerate their vision of building an AI-powered SOC of the future.

“Combining the two companies will deliver to our customers the power of a fully integrated Zero Trust platform and AI-powered security operations,” Chaudhry said.

This announcement marks Zscaler’s second major merger and acquisition deal within 18 months, following its acquisition of Avalor, a security data fabric provider, in March 2024. Red Canary, named one of CRN’s Coolest Endpoint and Managed Security Companies of 2025, reported that its annual recurring revenue (ARR) had exceeded $140 million as of January, up from $100 million in April 2023.

In a statement, Red Canary Co-Founder and CEO Brian Beyer expressed enthusiasm for the future partnership with Zscaler. “Revolutionizing security operations together” will leverage Zscaler’s massive data processing capabilities, providing access to 500 billion daily transactions of data and threat intelligence that will improve threat detection speed and accuracy.

Beyer also highlighted the importance of Red Canary’s partner ecosystem, which includes Solution Providers, Incident Response partners, and managed service providers, as essential to their strategy going forward. “Partners are critical to our mission,” he added.

Red Canary recently expanded its support to the three largest public cloud providers—AWS, Microsoft Azure, and Google Cloud— in March 2024, signaling continued growth and adaptation in the cybersecurity landscape.