The Israeli cybersecurity company is bought by Palo Alto Networks for a price that is $50M higher than it was rumored to be
A statement from Palo Alto Networks said the deal creates a game-changing enterprise security platform that will extend customers’ ability to safely enable applications and protect users from cyber threats on any device.
“This event marks a key milestone in our strategic enterprise security vision,” Mark McLaughlin, president and CEO of Palo Alto Networks, said in a March 24 statement. “It extends our next-generation security platform with a very innovative approach to preventing attacks on the endpoint. It enables us to accelerate the delivery of the market’s only highly integrated and automated enterprise security platform spanning network, endpoints, and the cloud. For customers, this translates into the most sophisticated and automated threat prevention for their entire organization.”
Giving hackers a taste of their own medicine
With offices in Tel Aviv and San Francisco, Cyvera is the developer of solutions to protect against zero-day attacks. Its flagship product is called Cyvera TRAPS or Remote Target Attack Prevention and Client-Side platform. The technology works by preventing attacks with offensive actions by using a hacker’s own toolbox instead of just trying to identify attacks before they take place. The system blocks attempts to exploit weaknesses and prevents hackers from capitalizing on social tactics that encourage users to run malicious files on their computers.
The company was founded in 2011 by Uri Alter, Natanel Davidi and Moshe Ben- Abu and launched its product in 2012. Cyvera, which now has 55 employees, has raised $13 million to date, including $2 million in 2011 from Blumberg Capital and $11M last August from Battery Ventures, Blumberg Capital, Ehud Weinstein and Dr. Ofir Shalvi.
Rumors about the deal have been circulating since last month, but the rumored price was estimated at only $150 million.
“Much like Palo Alto Networks set out to disrupt the network security market with its next-generation security platform, we founded Cyvera to revolutionize protection for the endpoint – one of the most vulnerable frontiers for cyber attacks,” Uri Alter and Netanel Davidi, Cyvera’s co-founders and co-CEOs, said in a statement. “We are pleased to join the Palo Alto Networks team and together help enterprise customers tackle the advanced threats they face today.”
Palo Alto Networks was founded in 2005 by Nir Zuk and Indian entrepreneur Rajiv Matera (former VP of engineering at Juniper). The company issued an IPO in July of 2012 and is valued at roughly $5 billion.
The deal is expected to close in the second half of fiscal 2014.