Pulse Secure acquires MobileSpaces for $100m

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deal merger picture: photo to go

MobileSpaces BYOD solution makes it possible to separate personal and organizational information.

Israeli cyber security company MobileSpaces has been acquired by California-based company Pulse Secure for an estimated $100 million. According to IVC data, MobileSpaces, which was founded as CellSec in 2011, has raised $12 million in two financing rounds. The big beneficiary is Accel Partners, which invested in the company in both rounds, and the Marker LLC fund is another. MobileSpaces currently has 20 employees in Petah Tikva and Silver Spring in the US, who are expected to join Pulse Secure.

MobileSpaces is developing a solution to help organizations deal with employees who bring a laptop computer, smartphone or tablet from home, a category referred to as BYOD (bring your own device). The solution enables organizations to guard sensitive information kept on the employees mobile devices. The growing use of smartphones and tablets is liable to cause significant leaks of information from the mobile devices, with the organization having no chance to close the breach.

MobileSpaces' solution, which can be run on any mobile device, makes it possible to separate personal and organizational information. In this situation, an employee who wants access to the organization's information will have to work through a defensive wall protected by a password. The company was founded by CEO David Goldschlag, formerly VP of Mobile at global security company McAfee, and CTO Yoav Weiss, one of the first employees at Israeli security giant Check Point Software Technologies Ltd. (Nasdaq: CHKP). The company's solution can be run on devices based on either Google's Android operating system or Apple's iOS operating system.

The acquisition of MobileSpaces is Pulse Secure's first significant acquisition in the mobile devices market. MobileSpaces' technology will be combined with the Pulse Secure's existing products, and will help the latter create a uniform user experience on both PCs and mobile devices.

Pulse Secure CEO Andrew Monshaw said, "Security is the No. 1 issue for IT organizations, but it's also the No. 1 reason many BYOD programs fail if not done right. So, if we're going to live in a world where employees want to use their own personal devices for work, it's extremely important to get the necessary security policies enacted in a simple, easy-to-use and robust way for both the end user and IT admin."

Monshaw added, "Many times, enterprises focus on the device exclusively, as opposed to also considering data in motion, like secure access to data. Additionally, they fail to consider the compliance aspects, as in who is accessing what with which device." He continued, "Lastly, we've seen many enterprises try to protect apps with container solutions that alter the user experience and require the use of SDKs or app wrapping to secure business applications. We're creating a secure environment on devices that ensures a native user experience for both work and life. For the enterprise, this is an important part of creating a work environment that is conducive to talent retention."

"MobileSpaces pioneered a unique virtualization technology that allows enterprises to create a seamless and secure BYOD strategy for the end user, meaning enterprises can connect the native business apps they need seamlessly to campus, data center and cloud applications and services," Monshaw explained.

Goldschlag said, "Enterprise mobility is key to business today but faces new challenges of connectivity, scale and application support. With the acquisition of MobileSpaces, Pulse Secure is helping enterprises rethink mobility to deliver unmatched power to their business in a way that is simple and secure for IT while also being natural for users."

Published by Globes [online], Israel business news - www.globes-online.com - on October 5, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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