US cloud monitoring service company Datadog (Nasdaq: DDOG) announced today that it is acquiring Israeli API observability platform Seekret. The company was founded by CEO Idan Gindi, CPO Ofir Yefet and CTO Valery Pliskin. The acquisition is believed to be for about $70 million.
Seekret manages the interface for external API software. It began as a cybersecurity company in the area of API but changed business direction and today engages in the management of interfaces. As far as is known, the company has not yet produced any major sales and revenue is believed to be less than $1 million.
Gindi, Yefet and Pliskin founded Seekret less than two years ago after working together at cybersecurity company Axonius but wanting to manage their own startup. Estimates are that they have raised less than $10 million from Israel's Hetz Ventures and Germany's Target Global and private investors such as Ariel Maislos, who sold Anobit to Apple 10 years ago ,and Granulate CEO Asaf Ezra, who recently sold his company to Intel.
DataDog is a fast growing company in the field of cloud monitoring and observability, which held its IPO on Wall Street two years ago and has a market cap of $35.4 billion.
DataDog is exploiting the low prices in the Israeli tech market to acquire relatively small companies and expand its workforce. Its aim is to operate a development center in Israel with 500 employees within a year. In the past DataDog has bought OzCode and its CEO Shimon Hason serves as head of DataDog Israel. The development center is in Tel Aviv's ToHa Tower, which has 40 employees including the team of 25 from Seekret.
Although originally focusing on data monitoring, DataDog has been expanding recently into many other enterprise software areas including cybersecurity for cloud applications, where it will compete with Israeli companies Wiz and Orca, as well as managing libraries and interfaces.
Published by Globes, Israel business news - en.globes.co.il - on August 4 2022.
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