Palo Alto Networks Inc. announced Tuesday that it would be acquiring Demisto, a security orchestration, automation, and response (SOAR) company, for $560 million in cash and stock. Shares are up 0.7% in morning trading. The Demisto deal "will help bring PANW closer to using AI and machine learning to further automated its customers' security operations," wrote FBN Securities analyst Shebly Seyrafi after the announcement. BTIG's Joel Fishbein expects the company to remain acquisitive under Chief Executive Nikesh Arora as it looks to accelerate its application framework. Palo Alto Networks reports earnings on Feb. 26. Its shares have risen 40% over the past three months, while the S&P 500 has gained 3.2%.
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