Israeli cybersecurity company AlgoSec has announced it is acquiring US SaaS cloud-native application protection platform developer Prevasio. No financial details about the acquisition were disclosed but sources close to the deal say it was for several tens of millions of dollars.
AlgoSec was founded in 2003 by CEO Yuval Baron and CTO Prof. Avishai Wool. From its inception the company 'bootstrapped,' not raising any money and operating from its profits. In 2018, Claridge IL bought a minority stake for $36 million in a secondary deal buying shares from founders and employees.
AlgoSec enables organizations to secure application connectivity by automating connectivity flows and security policy, from any location. The company's platform allows the world’s most complex organizations to gain visibility, reduce risk, achieve compliance at the application-level and process changes at zero-touch across the hybrid network.
Over 1,800 of the world’s leading organizations including Morgan Stanley, the Bank of England, Scotiabank, BT, BP, and Disney trust AlgoSec to help secure their most critical workloads across public cloud, private cloud, containers, and on-premises networks.
Prevasio was founded in 2020 and has developed a platform that deepens AlgoSec's protective capabilities for cloud data, while reducing costs for customers. The acquisition will allow AlgoSec to compete on the cloud-native application protection (CNAAP) market, which is worth an estimated $10 billion annually.
Baron told "Globes that he is not deterred by the current tech crisis, "It is natural that there are crises every few years, because there is a lot of desire by investors in the public market to see profits, so there is more extreme behavior in both directions. These are natural fluctuations in the capital and tech market."
Baron also referred to many companies that raised capital at a much higher value than the real value. "Obviously it was very tempting to raise at a high value and a lot of money. I think these two steps are a long-term mistake, those who think long-term don't want to raise at a bloated value."
In recent years, AlgoSec has enjoyed profitability and annual revenue growth of 20%, which is approaching $100 million per year.
Published by Globes, Israel business news - en.globes.co.il - on December 6, 2022.
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