HPE buys Israeli co Axis Security for $500m

HPE says the acquisition of the Tel Aviv-based company will allow it to expand its edge-to-cloud security capabilities.

Hewlett Packard Enterprise (HPE) has announced that it has acquired Israeli cloud security company Axis Security. No financial details about the deal were disclosed but sources familiar with the matter told "Globes" that the acquisition is for about $500 million.

However, after publication, an HPE spokeswoman told "Globes," "Although deal terms are not being disclosed for this transaction, the $500 million figure is inaccurate."

Axis Security was founded in 2018 by CEO Dor Knafo and Gil Azrelant and has raised $100 million to date including $50 million in its most recent financing round in March 2021. The company has 120 employees including 80 in Israel, many of whom will become millionaires from the share options that they hold.

HPE says the acquisition will allow it to expand its edge-to-cloud security capabilities by offering a unified Secure Access Services Edge (SASE) solution to meet the increasing demand for integrated networking and security solutions delivered as-a-service. Axis Security’s Security Services Edge (SSE) platform addresses the need for improved application performance and increased network security as the number of remote users increases and as enterprises continue to migrate applications to the cloud.

Knafo said, "We developed Axis Security to enable a world where connectivity to every business resource, from anywhere, could always be simple, safe and reliable. Our SSE platform is a natural complement to Aruba’s SD-WAN, network firewall, and dynamic segmentation offerings. Together, we create a unified SASE platform, designed to extend connectivity to edge, and do so through a combination of modern access services - all working together in harmony."

Tel Aviv-based Axis Security will become part of HPE's Aruba Networking Division.

HPE Aruba Networking EVP and general manager Phil Mottram said, "As we transition from a post-pandemic world, and a hybrid work environment has become the new normal, a new approach is needed for network edge security to protect critical SaaS applications. The convergence of Aruba and Axis Security solutions will transform edge-to-cloud connectivity with a comprehensive SASE solution that provides enterprises with the highest levels of security for both IoT devices and all users’ access across geographically distributed locations. Today, we also accelerate our vision to help our customers expand their secure connectivity needs with SASE and private 5G solutions, building on our recently announced agreement to acquire private cellular technology provider, Athonet."

Based in Tel Aviv, Israel, Axis Security provides a cloud-native SSE platform, Atmos, which delivers authenticated user access to private applications at the network edge, a secure web gateway (SWG) to safeguard user access to the Internet, and a cloud access security broker (CASB) that provides secure in-line access to SaaS apps, and Digital Experience Monitoring (DEM) to provide insights into user experience.

HPE says the transaction is expected to close by the end of the second quarter of its 2023 fiscal year subject to customary closing conditions. HPE will integrate Axis Security’s solutions with its edge-to-cloud security solutions and plans to make them available to customers in the third quarter of the HPE 2023 fiscal year.

Published by Globes, Israel business news - en.globes.co.il - on March 3, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

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