Microsoft in Negotiations to Acquire Israeli Cybersecurity Company CyberX
Estimated $170 million deal is set to be completed in June
Microsoft is in talks to acquire Israeli cybersecurity company CyberX Inc. for an estimated $170 million. The company has raised a total of $48 million to date from investors such as Northwestern Venture Partners, which led their last round in March, and Glilot Capital Partners, Flint Capital, and OurCrowd. Microsoft is expected to invest tens of millions of dollars more in CyberX’s employees.
Microsoft is very active in the cybersecurity field. The head of the company's development center in Israel, Michal Braverman-Blumenstyk previously ran Microsoft’s cybersecurity center. Last year, Braverman-Blumenstyk unveiled to Calcalist a new security solution that protects cloud-linked devices. It is believed CyberX will cooperate with the division overseeing its development at Microsoft. The acquisition deal is expected to be signed in June.
Cyber X was founded in 2013 by Nir Giller and Omer Schneider, graduates of the Israel Defense Force’s Center for Encryption and Information Security. Its product focuses on security solutions for Industrial Control Systems and the Internet of Things. The platform knows how to provide unique insights regardless of predetermined values, unique skills, or prior knowledge of the system.
The CyberX team. Photo: Courtesy
The company’s solution is installed in a large number of companies, many of which are Global 2000 companies, in various critical industries such as energy, water, pharma, chemicals, gas, and production systems.
There are a large number of Israeli companies active in CyberX’s field including Team8's Claroty and Daniel Bern's Otorio. At the end of last year, Indegy Ltd., which also operates in the field, was sold to Tenable for $78 million.