Microsoft confirms acquisition of Israeli co Hexadite

Microsoft

The Tel Aviv cyber security company, which has raised $10.5 million, is being sold for $100 million.

Microsoft Corp. has signed an agreement to acquire Israeli cyber security company Hexadite. Microsoft said that Hexadite, "delivers agentless, automatic incident investigation and remediation solutions." The terms of the agreement have not been disclosed but "Globes" reported last month that Microsoft is paying about $100 million for the Israeli company.

“Our vision is to deliver a new generation of security capabilities that helps our customers protect, detect and respond to the constantly evolving and ever-changing cyberthreat landscape,” said Terry Myerson, executive vice president, Windows and Devices Group, Microsoft. “Hexadite’s technology and talent will augment our existing capabilities and enable our ability to add new tools and services to Microsoft’s robust enterprise security offerings.”

Founded in 2014 by CEO Eran Barak, CTO Idan Levin and CPO Barak Klinghoffer, the company has raised only $10.5 million to date thus yielding a tenfold profit. Last year, the company raised $8 million in a Series A funding round from Hewlett Packard Ventures, Ten Eleven Ventures, and YL Ventures. With its headquarters in Boston, Hexadite's development office is in Tel Aviv.

Hexadite said in a blog today, "Today we’ve announced that Hexadite is being acquired by Microsoft. This serves as validation of all the team has done to create something truly amazing in the market. It also means that the technology is going to be used worldwide by hundreds of millions of people as part of Microsoft’s security portfolio."

Following the close of the deal and after a period of integration, Hexadite will be fully absorbed into Microsoft as part of the Windows and Devices Group.

Separately, the Central District Court ruled in favor of the Israel Tax Authority yesterday, finding that Microsoft unit Gteko, acquired in 2006, was liable to pay NIS 100 million tax on a payment of $26.6 million that was made for Gteko's intellectual property nearly a year after the $90 million acquisition of the company's shares. The court held that the economic value of a company remains even after it is acquired, and the the payment made subsequent to the acquisition was part of Gteko's value and as such was taxable.    

Published by Globes [online], Israel business news - www.globes-online.com - on June 8, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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