Israel's Guardicore acquired by Akamai for $600 million
Gurdicore’s technology enables large companies, such as financial institutions, to compartmentalize their servers in order to prevent security issues, data breaches, and identify attacks
Hagar Ravet | 13:43 29.09.2021
Akamai is purchasing Israeli startup Guardicore for $600 million in an all-cash deal, the companies announced on Wednesday. Guardicore was founded in 2013 by Pavel Gurvich (CEO), Ariel Zeitlin (CTO), and Dror Sal'ee (VP APAC) and has since raised $110 million. Akamai is a U.S.-based company traded on Nasdaq with a market cap of $17.2 billion. Akamai has developed a global content delivery network, and provides cybersecurity, and cloud services. The company said it plans to add Guardicore's micro-segmentation solution into its Zero Trust security portfolio. Previous investors in Guardicore include Qumra Capital, Deutsche Telekom Capital Partners (DTCP), Partech Ventures, ClalTech, Battery Ventures, 83North, TPG Growth, Dell Technologies Capital, and Greenfield Partner.
The closing of the transaction, which is subject to customary closing conditions, is expected to occur in the fourth quarter of 2021, with Akamai saying that for fiscal year 2022, the Guardicore acquisition is anticipated to provide about $30-35 million in revenue. "We were in the midst of a funding round and began to receive all kinds of offers," Gurvich told Calcalist. "We had an opportunity to continue and raise funds but we saw a unique opportunity in combining the technology of our product and Akamai's capabilities. Their ability to accelerate our technology can be significant."
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