Zscaler, Inc. (NASDAQ:ZS) announced on May 27, 2025, its definitive agreement to acquire Red Canary, a leading provider of Managed Detection and Response (MDR) solutions. The move aims at strengthening the company’s AI-powered security by incorporating Red Canary’s automation-led threat detection capabilities into its Zero Trust Exchange platform.
An employee standing in front of a large data center, looking toward the future of cloud security.
Through the acquisition, Zscaler, Inc. aims to merge its cloud-scale data fabric and global threat intelligence with Red Canary’s decade-long expertise in streamlining threat investigation.
Jay Chaudhry, CEO of Zscaler, Inc., made the following comment:
“The proposed acquisition of Red Canary is a natural expansion of our capabilities into managed detection and response and threat intelligence to accelerate our vision of AI-powered SOC of the future. By integrating Red Canary with Zscaler, we will deliver to our customers the power of a fully integrated Zero Trust platform and AI-powered security operations.”
The company has also recently invested in tools like Risk360 and Exposure Management, signaling Zscaler, Inc.’s intent to shift toward a fully integrated and intelligent Security Operations Center.
Investor sentiment remains strong for Zscaler, Inc.. Shortly after the deal was revealed, Cantor Fitzgerald raised its price target from $250 to $275 while maintaining an Overweight rating. Analysts from Stephens & Co. also reiterated an Overweight stance, stressing their confidence in the company’s growing role in enterprise cybersecurity.
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