The acquisition of 12-year-old Red Canary aims to boost Zscaler’s capabilities around threat detection and response, the company says.
Zscaler announced Tuesday it has reached a deal to acquire a major player in managed detection and response (MDR), Red Canary, as the cybersecurity vendor seeks to accelerate its threat mitigation offerings for customers and partners.
Terms of the acquisition — which is expected to be completed in August — were not disclosed.
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Founded in 2013, Red Canary is known as a trailblazer in MDR, which provides 24/7 threat monitoring and has seen massive adoption in recent years — as well as many new entrants on the vendor side. The Forrester Wave report has ranked Red Canary as a “leader” for the past three years, Zscaler noted in a news release.
Red Canary is also widely known in the cybersecurity industry for its threat intelligence reports and services.
The planned acquisition aims to boost Zscaler’s capabilities around threat detection and response as well as modernization of the Security Operations Center (SOC), the company said in its release.
The deal is a “natural expansion” of Zscaler’s existing offerings focused on enabling zero-trust security, with a goal to “accelerate our vision of AI-powered SOC of the future,” Zscaler Founder and CEO Jay Chaudhry said in a quote included in the release.
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 in the release.
The announcement marks the second major M&A deal for Zscaler in the past 18 months, following the acquisition of “security data fabric” provider Avalor in March 2024.
Red Canary, which was recently included among CRN’s Coolest Endpoint and Managed Security Companies of 2025, disclosed that its annual recurring revenue (ARR) had surpassed $140 million as of the end of January, up from $100 million in ARR as of April 2023.
In a blog post, Red Canary Co-Founder and CEO Brian Beyer said he looks forward to “revolutionizing security operations together” with Zscaler.
For Red Canary, the planned combination with Zscaler will notably bring “access to 500 billion daily transactions of data and threat intelligence processed on Zscaler’s Zero Trust Exchange and exposure management data,” Beyer wrote in the post. “This will significantly enhance our ability to detect threats faster and more accurately. The innovation this will bring is going to be incredible.”
Red Canary’s partner ecosystem “remains critical to our strategy,” he added.
“Whether it’s Solution Provider or Incident Response partners bringing in new customers, MSPs using Red Canary to serve their clients, or technology partners we collaborate with on joint development and integrations, partners are critical to our mission,” Beyer wrote in the post.
Major enhancements for Red Canary have included the expansion of support to the three largest public cloud providers—AWS, Microsoft Azure and Google Cloud — in March 2024.
