Palo Alto in negotiations to acquire Cider Security for $200 million

While the deal to acquire Israeli cybersecurity company Apiiro may have fallen through, Palo Alto Networks has still got its sights set on acquiring a local startup. Calcalist has learned that Palo Alto is in negotiations to purchase cybersecurity startups Cider Security, with the cost of the deal estimated to be around $200 million.

Palo Alto and Cider Security didn’t respond to Calcalist’s request for comment.

Cider Security, which develops an AppSec operating system, has raised $38 million to date. It completed a $32 million Series A in March of this year led by Tiger Global Management. Joining the round was the lead investor from Cider Security’s $6 million Seed financing, Glilot Capital Partners, with participation from Glilot’s early growth fund, Glilot+.

Cider Security team.

Cider currently employs 100 people on three continents. The company was founded in late 2020 by Guy Flechter and Daniel Krivelevich. Cider’s platform provides a unified view of the entire engineering ecosystem, providing security teams with an understanding and comprehensive view of the technologies, systems, and processes unique to every engineering environment. Security teams are provided a tailored set of controls and solutions to optimize security and achieve full resilience across the entire CI/CD pipeline - all the way from code to deployment.

Palo Alto has acquired seven Israeli startups to date, the latest being Israeli-founded cyber company Bridgecrew Technologies for $156 million in February of 2021. Palo Alto, founded by Israeli Nir Zuk, acquired Israeli company Cybera in 2012 for $200 million, which resulted in it setting up its Israel branch. It acquired LightCyber in 2017 for $105 million, and Secdo in 2018 for $100 million. In 2019, it acquired Twitslock for $410 million, PureSec for roughly $100 million, and Demisto for $500 million.