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Zscaler Rebuffed Takeover Offers Before 2018 IPO

  • Cisco offered about $2 billion in lead-up to Zscaler listing
  • Startup veteran Chaudry rewarded so far with valuation gain
Jay Chaudry, founder and chief executive officer of Zscaler Inc.

Jay Chaudry, founder and chief executive officer of Zscaler Inc.

Photographer: David Paul Morris/Bloomberg

Zscaler Inc.’s co-founder and chief executive officer turned down takeover offers because he wanted the fifth company he founded to be the one he held on to, according to people familiar with the matter. So far, that decision has paid off.

Zscaler was in the midst of pitching its initial public offering to investors when Cisco Systems Inc. and at least one other suitor offered to buy the company, according to people familiar with the matter. Both offers were about $2 billion, said the people, who asked not to be identified because the matter is private.