Geektime sources informed us that Microsoft acquired Israeli cloud security startup Adallom for $320 million. Soon afterwards, we received other intel that this deal may be false – this is what we think likely happened
*Update: It was later confirmed that Microsoft did buy Adallom for $320 million.
Geektime sources alerted us on Sunday that Microsoft acquired Israeli enterprise security startup Adallom for $320 million. The status of the deal was supposedly closed and waiting for just several more signatures.
However, we received internal sources’ confirmation shortly following initial reports that Adallom‘s management reached out privately to dispel rumors of the acquisition. While they did not negate it entirely, Adallom’s management allegedly suggested they were in talks with various cloud application companies and that if something this serious were to occur, they would formally announce it first.
Not the first time rumors of Adallom funding inaccurately leaked to the media
Back in January, there were also rumors that Adallom was raising a $30 million Series C funding round. While the timing of this round was confirmed as false by Adallom’s VP of Marketing, Tal Klein, the startup did announce the raising of a $30 million Series C round in April.
Due to this precedent, we believe this deal is close to being finalized and will likely surface officially soon.
If this is true, this is Microsoft’s second large Israeli cybersecurity investment within a year
In November, Microsoft bought predictive cybersecurity startup Aorato for a whopping $200 million, even though its solution came to market less than a year before the exit. As we have reported in the past, predictive cyber solutions are one of the hottest current VC funding areas, largely as a result of hacks like Sony’s.
Adallom addresses another popular cybersecurity trend: enterprise protection in the cloud. It helps companies monitor suspicious activity on SaaS solutions, such as on Salesforce.com, Google apps, and Microsoft Office. Behavior that might not be picked up by any individual cloud platform would pop up under Adallom’s monitoring because it analyzes every SaaS solution an enterprise deploys, including mobile cloud platforms. They also work with any platform or device.
To date, the company had raised $49.5 million in three funding rounds. Founders Roy Reznik, Ami Luttwak, and Assaf Rappaport launched the startup in 2012 in Israel, and now the company is headquarted in Palo Alto with offices in Israel.
To understand more about how Adallom protects companies’ security, check out this video: