Microsoft Acquires Israeli Cloud Security Co Adallom for $320M
Microsoft has reportedly decided to acquire Israeli cloud security company Adallom in a deal reportedly worth $320 million. If the deal is completed at that price, then this will be Microsoft's largest-ever acquisition in Israel.
Adallom was founded in 2012 by CEO Adam Rappaport, Ami Luttwak, and Roy Reznik, all graduates of elite IDF technology units. The company has raised $49.5 million to date and investors include Rembrandt Fund, Sequoia Capital and Index Ventures. In April, just three months ago, Adallom raised $30 million including an investment by HP, that company's first-ever investment in an Israeli start-up.
Adallom is striving to achieve a solution for a security problem which bothers many organizations on the seam of mobile computers such as smartphones, tablets and laptops, with apps outside the organization. In an interview with "Globes" Rappaport once said, "The protection layers for enterprise information are not relevant in a world that is becoming more and more accessible for an organization's users in remote server farmers."
To solve this, Adallom has developed a technology that provides a layer that envelopes the application and the organizational information that sits in the remote server farm, so that access to it passes via Adallom's command and control mechanism. This mechanism sends an alert in the event that anomalous use is identified that indicates the possibility that privileged use has been stolen or broken into.