CrowdStrike reveals over $600 million price tag for XM Cyber technology
The deal was announced in July, but the full value emerged only after closing, when CrowdStrike disclosed the issuance of more than 2.1 million shares alongside the previously announced consideration.
Cybersecurity giant CrowdStrike completed its acquisition of technology assets from Israeli cyber company XM Cyber, revealing the scale of a deal initially announced in July. A filing with the U.S. Securities and Exchange Commission (SEC) shows that CrowdStrike issued 2.1 million shares to an affiliate of XM Cyber’s owner, Germany’s Schwarz Group, in addition to the consideration disclosed when the agreement was signed.
At the time, CrowdStrike said it would pay $145 million in a combination of cash and shares, plus additional shares to be determined at closing. The company did not disclose the full value of the transaction, which covers XM Cyber’s intellectual property rather than its entire business.
The 2,118,022 shares issued at closing were worth approximately $441 million at a price of $208 per share. Adding that amount to the initial $145 million consideration implies total consideration of approximately $586 million, although the $145 million figure includes both cash and shares rather than cash alone. CrowdStrike’s share price has risen further since the transaction closed, currently being traded at $263.
The primary beneficiary of the transaction is Schwarz Group, which acquired XM Cyber in 2021 for $700 million. XM Cyber was founded in 2016 by former Mossad chief Tamir Pardo, his former deputy Noam Erez, Boaz Gorodissky and businessman Shaul Shani. Pardo is no longer involved with the company and does not hold a position there.
XM Cyber developed technology for simulating cyberattacks and identifying potential attack paths. It was acquired by Schwarz Group after raising $48 million, generating a substantial return for its early investors. The German group, best known for its retail businesses, subsequently expanded into cloud computing and digital services through Schwarz Digits.
CrowdStrike is acquiring XM Cyber’s source code and intellectual property, including more than 45 patents, but not its revenue or customer base. XM Cyber will continue to operate as a standalone business and support its existing customers under a license to use the technology from CrowdStrike. The companies have also outlined a broader partnership involving Schwarz Digits’ sovereign cloud platform, STACKIT.
Estimates suggest that XM Cyber has an order backlog of approximately $450 million. However, the technology sale does not include the company’s revenue or customers, meaning the ongoing business remains separate from the assets acquired by CrowdStrike.
