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Zscaler: Accelerating IT Integration in Mergers & Acquisitions

Zscaler
06/21/2026
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Let's suppose we have a parent company that acquires a target company. During this use case, we are faced with various problems that we are going to encounter. The problems we usually encounter are related to the overlapping IP, to the diversity of hardware that each company has, and to the time that the two companies use to converge at the architectural level. Another problem is related to the risks that are encountered during this acquisition phase. How does Zscaler solve all of this? By applying the Cloud First concept. By directing all of our traffic to our Zero Trust Exchange. I'll abbreviate it as ZTE. Within the Zero Trust Exchange, we will have all the capabilities and all the potential to apply our Zero Trust principles. Let's start with an example. I will have my workers, work from anywhere, and I will go to apply and install our Client Connector. Both for the users of the parent company and for the users of the target company. What they will do is simply a connection to the Zero Trust Exchange. At this point, to respect the Zero Trust framework, the first thing we have to ask ourselves is who is the user, what is the department, what is the location. To do this, we must integrate with an Identity Provider. Let's imagine that the target company uses Octa as an Identity Provider. While the parent company is free to use, for example, Entra ID. First of all, notice how Zscaler can support different Identity Providers simultaneously within the same tenant. This allows us to authenticate different users who come from different Identity Providers. These users want to reach the applications both in the parent datacenter and in the target datacenter. To do this, how do we do it? Let's install a virtual machine here too, which we will call App Connector. And this too will make its connection to the Zero Trust Exchange. The two connections made by the App Connector are two output connections. This allows us to make our datacenters invisible to the outside world, but allows our users to access the applications they can actually access. Let's now imagine using a Cloud Provider. We will install an App Connector on one of our Cloud Providers. The App Connector will make its output call to the Zero Trust Exchange and will allow us to reach our Cloud Applications within a Cloud Provider. In this scenario, we also find ourselves in the use case where the Branch Connectors have to start working together. As for the Branch Sites, what we can do is put a Branch Connector inside our Branches, which will make an output call to our Zero Trust Exchange. In addition to regulating access to OT and IoT devices, I can also have visibility of those that are actually the OT and IoT devices within my Branches. In this case, the Zero Trust Exchange will therefore proxy our requests to those that can be SaaS Applications or Internet traffic. Here too, of course, regulating what access is for our OT and IoT devices, both for those that can be Workload and for those that can be Server or Client. So what are the advantages that Zscaler introduces? Certainly simplify your architecture, make a scenario like this more agile and mitigate and control all the risks we are exposed to during, for example, a scenario like a Merchant Acquisition. With this I have finished, thank you for your attention and I invite you, if you are interested, to contact our Account Team through Zscaler. Thank you very much, goodbye. Microsoft Mechanics www.microsoft.com

TL;DR

  • Zscaler's Zero Trust Exchange addresses M&A integration challenges including IP overlap, hardware diversity, and extended convergence timelines by routing all traffic through a cloud-first security platform.
  • The architecture supports multiple identity providers simultaneously within a single tenant, allowing acquired companies to maintain their existing authentication systems like Okta alongside the parent company's Entra ID.
  • App Connectors use outbound-only connections to make datacenter and cloud applications accessible while keeping infrastructure invisible to external threats.
  • Branch Connectors extend zero trust principles to branch offices, providing visibility and access control for OT and IoT devices across the merged organization.

M&A Integration Challenges and the Zero Trust Approach

This technical overview addresses the common IT integration challenges organizations face during mergers and acquisitions, including overlapping IP address spaces, diverse hardware environments, extended convergence timelines, and elevated security risks during the transition period. Zscaler positions its Zero Trust Exchange as a cloud-first solution that eliminates the need for complex network reconfigurations by routing all traffic through a centralized security platform. The demonstration walks through a practical scenario where a parent company acquires a target company, showing how both entities can maintain their existing identity providers—such as Okta for the acquired company and Microsoft Entra ID for the parent—while achieving unified security policy enforcement through a single Zscaler tenant.

Architecture Components and Deployment Model

The solution architecture relies on several key components working together through outbound-only connections to the Zero Trust Exchange. Client Connectors installed on user devices from both organizations establish secure tunnels regardless of location, enabling work-from-anywhere scenarios without VPN complexity. App Connectors deployed as virtual machines in on-premises datacenters and cloud environments make internal applications accessible while keeping infrastructure invisible to the external internet. For branch office scenarios, Branch Connectors extend the architecture to provide visibility and access control for OT and IoT devices. This approach allows organizations to proxy requests to SaaS applications and internet resources while maintaining granular control over workloads, servers, and client devices across the merged entity.

Chapters

0:00 - Introduction and M&A Challenges
0:49 - Cloud-First Zero Trust Approach
1:15 - Client Connector Deployment
1:53 - Multi-Identity Provider Integration
2:40 - App Connector Architecture
3:12 - Cloud Provider Integration
3:38 - Branch Connector and IoT Visibility
4:43 - Summary and Benefits

Key Quotes

0:25 "The problems we usually encounter are related to the overlapping IP, to the diversity of hardware that each company has, and to the time that the two companies use to converge at the architectural level."
2:14 "First of all, notice how Zscaler can support different Identity Providers simultaneously within the same tenant."
2:56 "The two connections made by the App Connector are two output connections. This allows us to make our datacenters invisible to the outside world, but allows our users to access the applications they can actually access."

FAQ

How does Zscaler handle different identity providers during an M&A integration?

Zscaler's Zero Trust Exchange supports multiple identity providers simultaneously within the same tenant. This means the acquired company can continue using their existing identity provider (such as Okta) while the parent company uses a different one (such as Microsoft Entra ID), with both sets of users authenticating through the unified Zscaler platform.

What components need to be deployed to enable application access across merged organizations?

The deployment requires Client Connectors on user devices for secure connectivity, App Connectors as virtual machines in datacenters and cloud environments to make applications accessible, and optionally Branch Connectors for branch office locations requiring OT/IoT device visibility and control.


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