German retail and cloud computing company Schwarz Group today announced the acquisition of Israeli cybersecurity company XM Cyber for $700 million. XM Cyber's cofounder and president is Tamir Pardo, the former head of the Mossad.
XM Cyber has raised $49 million to date from Shaul Shani, its founder and first investor, as well as former CIA director David Petraeus, Australia's Macquarie Capital, and Nasdaq Ventures. The investors, who do not include any Israeli funds, have thus enjoyed returns of 14 times their investment.
XM Cyber operates in the attack path management sector to detect cyber threats by identifying weaknesses in critical infrastructures and warning about them. The company deploys an array of virtual sensors across the infrastructure network in order to simulate cyberattacks. In this way XM Cyber tests structural vulnerabilities as well as human error in assembling hardware and software infrastructures and the behavior of employees in the interface with the infrastructures.
XM Cyber operates in the US and Western Europe where it serves major banks. Customers also include Plymouth Rock and Hamburg Port. The company recently began operating in France and the UAE through a consortium of cybersecurity companies.
Schwartz Group said that XM Cyber will continue to operate independently, offering its full suite of products under its current brand and support structure, and will remain committed to supporting its global customer base with the same outstanding service its customers enjoy today. Schwartz Group is a huge retail group that has ambitions to become a European Amazon, with XM Cyber positioned to help its ecommerce security needs.
XM Cyber cofounder and CEO Noam Erez said, "With the backing and international footprint of the largest European retailer, we can accelerate innovation and growth and further strengthen our position in the global cybersecurity market. I would like to take this opportunity to thank our investors who have supported us along the journey in building this unique company."
Schwartz Group chief information officer Christian Muller added, "XM Cyber brings deep technical understanding and innovation that perfectly complements our portfolio for advanced cybersecurity services. Finding and closing security gaps from an attacker's perspective is a disruptive approach to the way organizations can proactively protect their networks. XM Cyber's solution builds on our strong IT security to further protect our customers, partners, and ourselves as a company."
XM Cyber has estimated annual revenue of $10-20 million, with a 300% growth rate. The company has 110 employees, many of whom are expected to earn millions through their share options from the deal.
Published by Globes, Israel business news - en.globes.co.il - on November 22, 2021.
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