Microsoft confirmed its acquisition of Israeli cloud security company Adallom on Tuesday, two months after "Globes" reported the anticipated deal.
Adallom, founded in 2012 by Adam Rappaport, Ami Luttwak, and Roy Reznik, received widespread publicity in December 2013 when it exposed vulnerability in Office365's security. No financial details were disclosed but Microsoft is believed to be paying between $250 and 320 million for the israeli company.
The firm is based in Palo Alto, California and has its development center in Tel Aviv's Ramat Hahayal. It was founded to provide a response to the changing nature of corporate security, as more services become accessible from the cloud - becoming vulnerable to external exploits.
Adallom had raised close to $50 million prior to this acquisition, including $30 million from HP - the firm's first investment in an Israeli startup.
Microsoft CVP Takeshi Numoto said, "This acquisition is the latest example of Microsoft’s commitment to delivering innovative identity and security capabilities to our customers, across both on-premises and multiple clouds.
"Adallom expands on Microsoft’s existing identity assets, and delivers a cloud access security broker, to give customers visibility and control over application access as well as their critical company data stored across cloud services."
The Israeli firm's CEO Rappaport wrote on the company's website: "Adallom started 2.5 years ago when Ami, Roy and I saw an opportunity to solve a challenge helping our customers that were looking for a way to keep their data safe in cloud applications.
"We’ve come a long way since those early days. Now, today I’m excited to announce another validation of Adallom, our vision, our team and our technology we are joining the Microsoft family."
In the last year alone, Microsoft has snapped up several Israeli companies, like Aorato and Equivio - each for close to $200 million.
Published by Globes [online], Israel business news - www.globes-online.com - on September 8, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015