Insight Venture Partners to buy Israeli co Checkmarx

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Insight will buy a majority stake in the Tel Aviv based IT security firm at a company value of $100 million, according to reports.

US private equity and venture capital firm Insight Venture Partners is set to acquire a majority holding in Israeli IT security firm Checkmarx at a company value of $100 million, according to reports in the Israeli media. Checkmarx declined to comment on the reports.

Checkmarx was founded in 2006 by Maty Siman at XT Investments (formerly Ofer Hi-Tech) Naiot Venture Accelerator. The company has raised $14.5 million to date including $8 million in 2013 from XT investments, strategic investor Salesforce.com Inc. (NYSE: CRM), and others.

Checkmarx does not approach information security by targeting viruses or hacking attempts, but by preemptively dealing with security breaches. It has developed technology to analyze code written for apps, offering monitoring and recommendations for correcting security problems in code that are liable to create security gaps in computer systems.

Checkmarx's business has been growing rapidly and it was ranked as Israel's eighth fastest growing technology company's by Deloitte's Technology Fast50 Israel 2013, after achieving 2,200% growth over the preceding five years.

Checkmarx focuses on apps, putting it in the mainstream in contemporary enterprise computing. A reason for the rapid growth of solutions such as the ones offered by Checkmarx is the need for frequent software updates. Software development teams use methodologies that include all a product's development stages - design, development, testing, and integration - at a fast pace. Checkmarx's tools can quickly scan code as it is being written, warning of weak spots in security, enabling their efficient correction.

Published by Globes [online], Israel business news - www.globes-online.com - on June 17, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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