Zscaler purchased Avalor in a $310m cash-and-stock deal Credit: Getty Images / da-kuk

Zscaler has acquired Salesforce Ventures-backed Israeli AI data startup, Avalor, which uses AI to analyse data for business security insights.

Zscaler reportedly purchased the startup in a $310m cash-and-stock deal which closed on Wednesday (13 March).

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Jay Chaudhry, Zscaler CEO, said Avalor has “innovative technology” which will be beneficial to its business customers. 

The CEO said the way the Israeli startup scours data would help them “do security far better than the way we are doing it”.

Avalor’s co-founder and CEO, Raanan Raz, said that selling the company made sense, as Zscaler has the resources to help Avalor maximise its potential to scale. 

AI deals in Israel peaked in value in 2019 and have failed to reach the same heights since, according to GlobalData’s deal database.

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In 2019, the value of AI deals in the country totalled $11.8bn, a significant increase over the year prior which saw deals total $1bn.

In 2023, the value of AI deals totalled $4bn, a slight decrease from 2022 which saw investment in Israeli AI deals total $4.5bn.

GlobalData forecasts that the overall AI market will be worth $909bn by 2030, having grown at a compound annual rate of 35% between 2022 and 2030.

In the GenAI space, revenues are expected to grow from $1.8bn in 2022, to $33bn in 2027, a CAGR of 80%.