Tenable in advanced talks to buy Israeli cybersecurity co Ermetic

Ermetic founders credit: Eyal Izhar
Ermetic founders credit: Eyal Izhar

Tenable is in negotiations to pay $350 million for the Israeli identity first cloud security company, sources close to the deal have told "Globes."

US cybersecurity company Tenable (Nasdaq: TENB) is in advanced talks to acquire Israeli cybersecurity company Ermetic for about $350 million, sources close to the deal have told "Globes."

Ermetic, which was founded in 2019 by CEO Shai Morag, Sivan Krigsman, Arick Goomanovsky and Michael Dolinsky, has developed security solutions for public clouds including identity first cloud security for close supervision of managing access permission.

The company has raised $97 million to date and has 140 employees, including 80 in Israel, according to IVC Research. Investors in Ermetic include Glilot Capital Partners, Qumra Capital, Target Global, and Accel.

Last year Ermetic was placed second in "Globes" top ten most promising startups. Morag told "Globes," "The main advantage of the cloud over having standalone servers is not necessarily the cost, but the fact that the cloud service providers like Microsoft, Google and Amazon have built infrastructures that makes it possible to receive a great many ready-made things, so that developing an application in the cloud will take six to nine months instead of three years. That's why 95% of applications are built in the cloud today, and anyone who doesn’t migrate to the cloud is left behind. Cloud infrastructure will be a half-trillion-dollar market by the end of the decade, and experience shows that 6% of that amount will go towards security, so this sector has a $30 billion potential."

If the deal is completed, it will not be Tenable's first acquisition in Israel. In 2019, Tenable acquired Israeli cybersecurity company Indegy for $78 million. Tenable is traded on Nasdaq with a market cap of $5.2 billion and has 2,500 employees.

Published by Globes, Israel business news - en.globes.co.il - on September 5, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

Ermetic founders credit: Eyal Izhar
Ermetic founders credit: Eyal Izhar
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