Cyber security provider Palo Alto to buy Demisto for $560 million

(Reuters) - Cyber security company Palo Alto Networks Inc said on Tuesday it would buy U.S.-Israeli information security firm Demisto Inc for $560 million in cash and stock.

Demisto, founded in 2015 by four McAfee executives, develops and markets automation tools for information security management, including a chatbot that assists in handling tasks.

Last October, the company raised $43 million in an investment round led by Greylock Partners, bringing total equity funding to $69 million. Accel Partners, ClearSky Security, Slack Technologies, Wipro Ventures, Secure Octane and Cerca Partners are also backers.

The proposed deal is expected to close during Palo Alto’s fiscal third quarter, the company said.

Demisto’s products will continue to be available to customers and partners after the deal closes and founders Slavik Markovich, Rishi Bhargava, Dan Sarel and Guy Rinat will join Palo Alto.

Reporting by Arjun Panchadar in Bengaluru; Editing by Sriraj Kalluvila