Israeli cybersecurity co Tufin lays off 55

Reuben Harrison and Ruvi Kitov Tufin IPO Photo: PR
Reuben Harrison and Ruvi Kitov Tufin IPO Photo: PR

Ahead of its acquisition by Turn/River Capital for $570 million, the cybersecurity policy management and automation company is laying of 10% of its workforce.

Israeli cybersecurity company Tufin Software Technologies Ltd. (NYSE: TUFN) is laying off 10% of its workforce. The company, which provides cybersecurity policy management and automation for enterprise communications networks, will lay off 55 employees including 25 employees in Israel.

In April the company announced that it had entered into a definitive agreement to be acquired by US software-focused investment firm Turn/River Capital, in an all-cash transaction that values Tufin at $570 million. Tufin is now laying off sales staff after of completion of the deal. The layoffs were first reported by the "Startup" website and confirmed by "Globes."

Turn/River Capital specializes in investments in well-established software companies and is paying $13 cash for each Tufin share, below the $14 per share at which Tufin held its IPO on Wall Street in 2019. At its peak, Tufin's share price reached $30.5, giving it a market cap of $1 billion. Tufin's share price closed on Friday at $12.33, giving a market cap of $479 million.

Last week Tufin reported second quarter revenue of $29.5 million, up 15% from the corresponding quarter of 2021 and non-GAAP net loss of $8.7 million, up from $8.2 million in the corresponding quarter of 2021.The company has an especially low enterprise multiple of 3.5.

Tufin said, "As part of the enterprise's streamlining process, which is designed to speed up the return to profit, the company has decided to reduce its workforce by 10%, with half the layoffs in Israel. With this the company expects to meet its targets. We are regretfully parting with some wonderful people who have contributed much to the company and the company will help these employees who are leaving to find new opportunities as they move forward. As part of this, the company will provide benefits through enlarged compensation and provide support services during the adjustment process and finding a new job for those who have been laid off."

Published by Globes, Israel business news - - on August 21, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Reuben Harrison and Ruvi Kitov Tufin IPO Photo: PR
Reuben Harrison and Ruvi Kitov Tufin IPO Photo: PR
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