Cisco Systems Executive Chairman John Chambers ended his visit to Israel on Tuesday by announcing that his company would buy Israeli startup CloudLock, which develops security technologies for the enterprise cloud. As a result of the acquisition, CloudLock’s shareholders, including investors, entrepreneurs, and company employees, will receive $293 million.
Aim: To expand Cisco’s cloud security portfolio
CloudLock develops security technologies for cloud enterprise apps, based on cloud-native API. Among other things, the company supports services such as Google Apps, ServiceNow, Dropbox, Force.com, AWS, and Azure Office 365. The company’s CASB (cloud access security brokers) technology helps customers understand and monitor users’ behavior and access to sensitive information found on cloud apps and provides protection against threats, monitoring, and compliance, whether or not the cloud services involved are IT-approved. CloudLock currently protects more than 150,000 apps, with 10 million users and over a billion files monitored daily. Its customers include huge enterprises like Motorola, HBO, John Lewis, DreamWorks Studios, the U.S. Army, and more.
CEO Gil Zimmerman, CTO and former Cedar Fund in-house entrepreneur Ron Zalkind, and VP Business Development Tsahy Shapsa founded CloudLock in 2007 under the name Apringo, which was changed to CloudLock in 2011. Since its founding, the company has raised a total of $35 million from a number of investors, including American funds Cedar Fund and Bessemer Venture Partners, SalesForce, and private investors.
As part of the deal, slated for signing in the third quarter of 2016, Cisco will pay CloudLock’s shareholders $293 million and CloudLock’s employees will join Cisco’s networking and security business division, managed by David Goeckeler. CloudLock employees joining Cicso will receive bonuses and other incentives. The company’s headquarters are in Waltham, Massachusetts, and it has a development center in Tel Aviv with 150 employees.
In response to the acquisition, Cisco Head of Corporate Development and Investments Rob Salvagno said, “As companies are migrating to the cloud, they need a technology partner that can accelerate that transition and deliver critical security capabilities for all their users, apps and data in a seamless way. CloudLock brings a unique cloud-native, platform, and API-based approach to cloud security, which allows them to build powerful security solutions that are easy to deploy and simple to manage.” Salvagno added that the buyout would expand Cisco’s cloud security portfolio.