Zscaler acquired Israeli cybersecurity startup Avalor in March 2024. The deal was reported at $350 million by Israeli media, but Zscaler did not disclose a price in its announcement. Its fiscal 2025 Form 10-K later reported $256.7 million in purchase-price consideration—a different, company-reported accounting measure that should not be treated as interchangeable with the reported headline valuation.
What happened in the Zscaler–Avalor deal?
Zscaler announced its acquisition of Avalor Technologies on March 14, 2024. The announcement said the acquisition had closed on March 13; Zscaler’s later fiscal 2025 Form 10-K gives March 8, 2024, as the completion date for accounting purposes. The two documents describe the timing differently, so both dates matter. Zscaler’s announcement said consideration was predominantly cash, with part delivered in equity subject to vesting conditions, but did not disclose a purchase price.
Was Avalor really acquired for $350 million?
That figure was reported, not confirmed by Zscaler as the purchase price. Globes and Calcalist reported a value of about $350 million; SecurityWeek also noted the difference between the reports and Zscaler’s undisclosed price.
Zscaler’s fiscal 2025 Form 10-K reported $256.7 million in total purchase-price consideration. It separately disclosed $46.5 million in deferred merger consideration, payable in restricted Zscaler shares to certain former Avalor employees, and replacement awards with a fair value of $14.4 million. Of those replacement awards, $2.4 million was allocated to purchase-price consideration. These figures describe different accounting categories; available sources do not establish that the reported $350 million and the $256.7 million use identical definitions. Zscaler’s Form 10-K is the primary source for its accounting figures.
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What did Avalor’s technology do?
Avalor built a product called Data Fabric for Security. Rather than acting mainly as another firewall, endpoint agent, or vulnerability scanner, it was designed to collect information from security and business systems, normalize it, connect related findings, and add context such as asset importance or business ownership. Zscaler said Avalor had more than 150 pre-built integrations. The company’s announcement described the technology and its intended role in combining security data.
For example, different tools might report the same vulnerable server, each with a different identifier or severity rating. A data fabric attempts to reconcile those records and add context so a team can decide which issue deserves attention first. That can make findings easier to interpret, but it does not by itself prove that a vulnerability is exploitable or that remediation will succeed.
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Why did Zscaler want Avalor?
Zscaler’s Zero Trust Exchange provides cloud-delivered security services and generates data about activity across its platform. Avalor offered a way to combine those signals with information from other security tools. Zscaler said its platform processed more than 400 billion daily transactions, a company-reported figure, and described the combined data as a foundation for real-time insights and AI-powered security applications.
The first named application was Unified Vulnerability Management, intended to combine Zscaler data with third-party sources to help discover and prioritize vulnerabilities. Zscaler also cited attack-path and kill-chain analysis, threat remediation and prevention, and more automated security operations as strategic aims. Those are stated goals, not proof that the acquisition made security operations autonomous or prevented breaches.
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What could the acquisition mean for customers?
The intended benefit is a more connected view of risk for organizations whose security data is spread across many tools. Existing Zscaler customers, particularly large enterprises, could use the combined platform to connect Zscaler telemetry with outside asset and vulnerability data, reduce duplicate findings, and give teams more context for prioritization. Zscaler later reported customer traction for Unified Vulnerability Management, the solution it associated with Avalor. Its earnings-call document discusses that traction.
The technology is not a substitute for endpoint protection, identity security, cloud controls, or the scanners that generate findings. Buyers should assess whether it improves asset identity, ownership mapping, risk prioritization, and remediation speed—not just whether it consolidates dashboards or advertises a long integration list. Data quality, API changes, rate limits, field mapping, and vendor-specific data models can all affect the usefulness of a unified view. Consolidating analytics around one platform can also increase dependence on that vendor’s roadmap and commercial terms.
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Zscaler’s fiscal 2025 filing said it had integrated Avalor’s technology into its cloud platform. That does not establish that every original Avalor feature or interface remains available as a separate product. Availability, packaging, and licensing should be confirmed with Zscaler for the customer’s contract, edition, location, and evaluation date.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How did the deal fit Zscaler’s strategy?
The acquisition extended Zscaler’s ambition beyond securing traffic and access toward security exposure management: collecting signals across tools, interpreting organizational risk, and helping teams act on it. In that sense, Avalor sat between traditional vulnerability management and a broader security-data platform. Its value proposition was the data layer and contextualization, not simply scanning assets for flaws.
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The strategic logic reflects a common enterprise problem: more tools can create more fragmented data, while severity scores alone do not tell a team which exposed asset matters most to the business. A unified model may improve prioritization if the underlying records are accurate and the context is maintained. AI can benefit from normalized, connected data, but the acquisition alone does not establish that AI can reliably determine exploitability or prevent an attack.
What is known about Avalor’s size before the acquisition?
Contemporaneous reports described Avalor as an Israeli startup founded around 2022 that emerged from stealth in 2023. Media accounts put its funding at approximately $30 million, with some describing $25 million in Series A funding plus a $5 million seed round. Globes estimated late-2023 annual recurring revenue at about $3 million; that was a media estimate, not a figure confirmed in Zscaler’s SEC filing. Globes’ report contains those estimates and background.
Those estimates help explain why the reported valuation attracted attention, but they are not audited deal metrics and should not be used to calculate a definitive acquisition multiple. Globes also described Avalor as Zscaler’s third Israeli acquisition, after Canonic and Trustdome.
What should enterprise buyers verify?
- Which Avalor-derived capabilities are included in the specific Zscaler products and contract under consideration.
- Which integrations are supported for the organization’s actual tools, and what data each integration imports or omits.
- How the platform matches assets, handles duplicates, records ownership, and accounts for stale or conflicting source data.
- How it distinguishes severity, exposure, exploitability, asset criticality, business impact, and remediation feasibility.
- What data is retained, how APIs and authentication are managed, and whether the workflow produces measurable improvement in remediation.
- How licensing, migration, and platform dependency compare with a dedicated vulnerability or exposure-management product.
A data-fabric approach is most relevant to organizations with substantial tool sprawl and a need to reconcile security findings across systems. A smaller team seeking a low-cost standalone scanner, or a buyer who wants to keep analytics independent of a major cloud-security vendor, may find the broader platform approach less suitable.
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