Palo Alto Networks, an enterprise cybersecurity company, has signed a definitive agreement to acquire Cider Security, an Israel-based application security (AppSec) and software supply chain security startup, for nearly USD 195 million in cash. The transaction is expected to close during Q2 FY2023. According to TechCrunch, the acquisition will comprise USD 200 million in cash and USD 100 million in shares.

Founded in 2020, Cider Security scans and secures the CI/CD pipeline to identify vulnerabilities in code. The company provides tailored solutions to orchestrate and implement CI/CD security from code to deployment. It monitors malicious activities across cloud applications, especially deployments, modifications, and updates to code. The company currently has an employee headcount of 100 across three continents.

Palo Alto Networks will merge Cider Security into its cloud-native application security platform Prisma Cloud, to add software supply chain security capabilities that secure the entire application lifecycle from code to cloud.

Analyst QuickTake: This month, the application security startup Apiiro, raised USD 100 million in a Series B funding round led by General Catalyst. The funding announcement came a few months after Palo Alto Networks had plans to acquire Apiiro for around USD 600 million. However, the takeover talk eventually collapsed owing to differences regarding an appropriate valuation for Apiiro.