Cybersecurity company Palo Alto Networks (NYSE: PANW) last night confirmed "Globes" report that it is buying Herzliya-based Twistlock, which develops security solutions for virtual containers, for $410 million in cash. In addition, the company said that it is also buying Tel Aviv-based PureSec, which develops security products in a serverless architectural environment. No financial details were disclosed on this second acquisition, but market sources inform "Globes" that this acquisition was for about $60-70 million.
Twistlock was founded by Ben Bernstein and Dima Stopel in 2015. Both worked for ten years at Microsoft before founding their company. The main investors and shareholders in Twistlock are private Silicon Valley-based investment office Iconiq Capital;, YL Ventures, a US-Israeli venture capital firm specializing in cybersecurity; US venture capital firms Rally Ventures, TenEleven, and Polaris; and Dell Technologies Capital.
PureSec was founded in 2016 by CEO Shaked Tzin, CTO Ory Segal and VP R&D Avi Shulman, PureSec has identified the need for a unique security solution tailored for serverless applications. The company has 18 employees who are all expected to join Palo Alto Networks Israel team. PureSec has raised $10 million to date from Square Peg Capital, TLV Partners and Entr?e Capital.
Tzin told "Globes" in October after PureSec's last financing round that, "organizations going over to serverless architecture are still responsible for application code that embraces the application layer but in a situation in which the organization has no access to the user or cloud supplier infrastructure, it has no capability for installing traditional solutions." This is where PureSec comes into the picture and, "Adds protection layers at the code level of the application and thus provides serverless functions with the ability to protect itself, while blocking attempts at attacking them."
Palo Alto Networks was represented by US Firm Sidley Austin and by Advs. Barry P. Levenfeld and Benjamin M. Sandler of Yigal Arnon & Co. PureSec was represented by Advs. Tomer Shani, Shelly Menis-Shemesh and Mouna Totry of Meitar Liquornik Geva Leshem Tal law firm. Twistlock was represented by Advs. Itay Frishman, Assaf Oz, Yael Nardi, Nir Dagan, and Eyal Safrai of Meitar Liquornik Geva Leshem Tal law firm.
Published by Globes, Israel business news - en.globes.co.il - on May 30, 2019
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