CrowdStrike buys Israeli cloud security co Adaptive Shield

Following the acquisition of Israeli cloud security companies by Palo Alto Networks, Cisco, and Check Point, CrowdStrike followed suit by acquiring Adaptation shield.

The acquisition price was not disclosed, but it is estimated at $300 million, which represents a good return for investors in Adaptive Shield, which raised a total of $44 million. Most of the payments were made in cash and partly in the form of shares, the companies said.

Among the big winners from the deal are founders Maor Ben and Johnny Shalomov, who are expected to own between 20 and 30% of Adaptive Shield shares; Vertex Ventures, which was one of the early investors in the startup along with private investors Zohar Alon and Yair Goldfinger, are believed to have a 25% stake, while Insight Partners, which invested later, also holds a 25% stake.

Other investors include Okta Ventures and Blackstone, which invested $10 million last year at a company valuation of $127 million, and own a roughly 8% stake, according to PitchBook.

CrowdStrike is one of the largest cybersecurity companies in the United States, which has grown thanks to its cloud data security platforms. It is a competitor to the Israeli company Guardian One (NYSE: S). Since 2020, CrowdStrike had purchased four companies in Israel before this latest acquisition. Its most recent acquisition was Flow Security, which it bought six months ago for $200 million. Before that, it acquired Bionic for $350 million and Reposify and Preempt Security for smaller, undisclosed sums. CrowdStrike’s development center in Israel is located in Ramat Gan and is managed by Roman Blachman.

Adaptive Shield is headquartered in Tel Aviv and has 100 employees. Like Wiz, Adaptive Shield helps enterprise data security teams monitor and control the cybersecurity aspects of applications running in a company’s cloud — including business apps Slack, GitHub, Zoom, Salesforce, Microsoft, and Google. The Adaptive Shield platform enables configuration management, identification of API connections and risks, user management and detection of identity-based attacks on cloud applications.

“CrowdStrike is designed to address the toughest cybersecurity challenges, and we drive relentless innovation based on what our customers need to stay ahead of modern threats,” said George Kurtz, CEO of CrowdStrike. “As adoption of SaaS and AI increases, each new application brings additional complexity and… The risk of misconfigurations across human and non-human accounts creating opportunities for sophisticated attacks With the acquisition of Adaptive Shield, CrowdStrike will continue to set the standard for identity-based protection in the cloud, providing the best protection Falcon’s best-in-class SaaS platform.”

“The widespread adoption of SaaS applications has rapidly expanded the enterprise attack surface, as shared responsibility models and fragmented security controls make SaaS environments a prime target,” added Mauer Bean, co-founder and CEO of Adaptive Shield. “Our mission complements CrowdStrike perfectly, stopping cybersecurity breaches.” SaaS is accelerating integration on the most comprehensive cybersecurity platform, and I am very proud of our team who have built the most advanced, market-defining SaaS security solution.”

Published by Globes, Israel Business News – en.globes.co.il – on November 6, 2024.

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