Cybersecurity company Palo Alto Networks (Nasdaq: PANW) today announced that it has entered into a definitive agreement to acquire Israeli cloud security startup Dig Security. "Globes" reported last month that Palo Alto Networks was set to buy Dig Security, which provides Data Security Posture Management (DSPM), for $300-400 million.
Dig Security has developed a platform to prevent data leaks for databanks in the cloud. The company was founded in 2021 and has raised $45 million since then. In its most recent financing round in 2021, Dig Security had a company valuation of $125 million and it is now being sold well above that valuation at between $300 million and $400 million. Investors include Team8, for which this would be one of its most significant exits in the current wave of acquisitions of cybersecurity companies. Other investors include CrowdStrike, CyberArk and Merlin Ventures. Later investors who will enjoy lower returns include Signal Fire and Flicis Ventures.
Palo Alto Networks CPO Lee Klarich said, "As companies build AI-enabled applications, there will be a substantial increase in the amount of data transferred to the cloud. Dig's highly innovative DSPM technology helps safely enable this shift, and its dedicated team will complement and help advance Palo Alto Networks' strengths across cloud security. The announcement of our intent to join forces with Dig reinforces our longstanding commitment to our team in Israel and to continue growing our footprint with its talented and dedicated cybersecurity professionals."
Dig Security cofounder & CEO Dan Benjamin added, "Modern cloud applications leverage a broad set of data stores to meet the complex needs of businesses. We developed an award-winning DSPM solution to alleviate this strain by providing a centralized offering to monitor and manage the security of these cloud data stores. Integrating Dig's technology with Prisma Cloud will enable customers to effectively manage the security of their diverse data stores in modern cloud applications and reduce the risk of data breaches. My co-founders and I look forward to continuing our innovation journey with Palo Alto Networks to make the world safer."
Published by Globes, Israel business news - en.globes.co.il - on October 31, 2023.
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