CloudGenix

CloudGenix — the American developer of technologies of software-defined networks (SD-WAN). The company competes with Cisco and other participants of the market of SD-WAN, being guided by large customers who need to manage network traffic in branches.

History

2020: Palo Alto Networks purchased CloudGenix for $420 million

On March 31, 2020 Palo Alto Networks announced acquisition of CloudGenix for $420 million. The buyer intends to integrate the products SD-WAN which are developed by the American startup, with the Prisma Access platform relating to so-called boundary services of secure access (Secure Access Service Edge, SASE). Finally Palo Alto Networks wants to transfer the market from SD-WAN on SASE, it is specified in the press release.

Palo Alto Networks announced acquisition of CloudGenix for $420 million

As the companies become more and more distributed, clients want to receive flexible solutions which just work, and it belongs both to security, and to networks — the CEO of Palo Alto Networks Nikesh Arora says. — After closing of the transaction the integrated platform will provide to clients the complete solution SASE which is the best in the class, simple in deployment, managed in a cloud and delivered in service quality.

It is going execute all formalities concerning CloudGenix sale in the fourth financial quarter which for Palo Alto Networks will come to the end in July of 2020 calendar year.

According to the results of a final round of financing before accession to Palo Alto Networks the CloudGenix company attracted $100 million investments and was estimated at $190 million. Thus, Palo Alto Networks paid for merger of the IT company twice more, than investors estimated it.

Founders of CloudGenix agreed to pass into Palo Alto Networks. Among them — Kumar Ramachandran who worked about 11 years in Cisco, including at a position of the head of department of development of WAN products.^[1]

Notes