Palo Alto Networks has entered into a definitive agreement to acquire Aporeto Inc., a machine identity-based micro-segmentation company. Under the terms of the agreement, Palo Alto Networks will pay approximately $150 million in cash to acquire Aporeto, subject to customary adjustments. The acquisition is expected to close during Palo Alto Networks’ fiscal second quarter, subject to the satisfaction of customary closing conditions.

Palo Alto Networks provides the most complete cloud security suite in the industry, with a broad set of capabilities in all critical areas of cloud security. The proposed acquisition of Aporeto will further strengthen the company’s Cloud Native Security Platform delivered by Prisma Cloud. Aporeto identifies workloads and applies micro-segmentation across all infrastructures, helping customers secure their applications at scale.

“We are thrilled to welcome Aporeto to the Palo Alto Networks family. We believe the addition of Aporeto’s unique machine identity technology will further enhance our leading Prisma Cloud capabilities and strengthen our commitment to helping customers secure their journey to the cloud,” said Nikesh Arora, chairman, and CEO, Palo Alto Networks.

The company was recognized as a Gartner Cool Vendor in Cloud Security in 2018 and named to the 2019 CNBC Upstart 100 list. Aporeto co-founders Dimitri Stiliadis and Satyam Sinha have agreed to join Palo Alto Networks. “We have dedicated ourselves to helping organizations securely embrace the cloud. Teaming up with Palo Alto Networks allows us to bring our machine identity-based micro-segmentation technology to a large customer base. We are thrilled to join forces to help customers secure their journey to the cloud,” said Dimitri Stiliadis, co-founder and CTO, Aporeto.