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Why Palo Alto Networks Acquired Twistlock and PureSec in 2019

Palo Alto Networks framed Twistlock and PureSec as complementary additions to Prisma in 2019. Its “best in market” language was a company claim, not an independent ranking.
From TheFinanceBase Team2 min to read
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Nikesh Arora’s “best in market” framing reflected Palo Alto Networks’ view of two cloud-security acquisitions announced on May 29, 2019—not an independently verified ranking. Twistlock focused on container security; PureSec focused on serverless security. Together, Palo Alto Networks said, they would broaden its Prisma cloud-security strategy.

What did Twistlock and PureSec do?

The companies addressed different kinds of cloud workloads and security risks, according to Palo Alto Networks’ May 29, 2019 announcement.

Company Workload focus Capabilities described in the 2019 announcement
Twistlock Containers and cloud-native applications Vulnerability management, compliance, and runtime defense
PureSec Serverless applications and functions Vulnerability management, access permissions, and runtime-threat protection

In broad terms, container security addressed applications packaged to run in containers, while serverless security addressed functions run through serverless computing services. Palo Alto Networks’ stated rationale was to cover both areas within a broader cloud-security offering.

Why did Palo Alto Networks want to acquire them?

On its Q3 FY2019 earnings call on May 29, 2019, management described a plan to integrate Twistlock with RedLock and add PureSec’s serverless-security capabilities. CFO and EVP Dipak Golechha called PureSec “By far is the leader in serverless computing – serverless security and we decided to acquire that at the same time.” That is Golechha’s characterization of the company, not an independent assessment or a statement attributable to Arora.

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The strategic logic was complementary coverage: Twistlock brought container-focused controls, while PureSec brought tools for securing serverless functions. Palo Alto Networks presented both as additions to Prisma, its cloud-security strategy.

What did the deals cost?

Palo Alto Networks said it would pay approximately $410 million in cash for Twistlock, subject to adjustments. The company did not disclose PureSec’s transaction terms. The acquisition announcement also reported that Twistlock had more than 290 customers, with more than a quarter on the Fortune 100 list. These are Palo Alto Networks’ figures from 2019, not independently verified or current counts.

The same announcement said Prisma was used by approximately 9,000 customers worldwide at the time. That, too, was a company-reported historical figure—not a current customer count or an independent market measure.

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Does “best in market” mean they were proven market leaders?

No independent product comparison or market-wide ranking is established by the cited sources. The phrase “best in market” is best understood as promotional positioning around the acquisitions. The company’s earnings-call statement that PureSec was a leader is likewise management’s opinion; it does not establish a third-party ranking of either product.

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The available evidence documents what Palo Alto Networks announced, paid for Twistlock, and said about the products’ roles. It does not demonstrate that either product outperformed competitors in independent testing.

What happened after the announcement?

On July 9, 2019, Palo Alto Networks announced that it had completed the Twistlock acquisition and described the two companies’ capabilities as strengthening its Prisma cloud-security offering. This provides historical integration context only. It does not establish current product names, packaging, availability, or feature mappings.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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