Cyber unicorn Cyera acquires Otterize for tens of millions to tackle cloud identity sprawl
The move adds intent-based access control to Cyera’s platform as it positions itself at the center of cloud data protection.
Israeli cybersecurity company Cyera is acquiring fellow Israeli firm Otterize, which specializes in securing non-human identities in cloud environments. The deal is valued at tens of millions of dollars.
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"This is an opportunity to add one of the most talented teams I know, who bring highly advanced technology with them," said Tamar Bar-Ilan, co-founder and CTO of Cyera, in a conversation with Calcalist. "Our goal is to become the largest and most important data security company in the world, powered by the most advanced platform available. Otterize will help us get there and strengthen our team in Israel. This is a major milestone on our journey."
Bar-Ilan added that, "Both the acquisition of Shape AI and this new acquisition will join our development team and advance the core projects critical to building our platform."
This marks Cyera’s third Israeli acquisition, after also purchasing Trail Security, which was acquired last October and integrated into its platform. To date, the company has invested an estimated $250 million in Israeli acquisitions.
The Otterize acquisition, signed amid the recent war between Israel and Iran, underscores how Israeli tech companies continue to grow, raise capital, and pursue major strategic deals even during times of crisis.
"Especially during the war, it was important for us to make this move. It’s a message of national resilience, to our customers and to the world, that nothing will slow us down. We are not just a company; we are also a mission on behalf of the state," Bar-Ilan said.
This acquisition follows Cyera’s purchase of Shape AI just two weeks ago and comes shortly after completing a $540 million Series E round, bringing total funding to $1.3 billion and an estimated valuation of $6 billion.
Otterize, founded in 2022 by Tomer Greenwald, Ori Shoshan, and Uri Sarid (former CTO of MuleSoft), has developed a solution for managing and securing non-human identities in cloud environments. The company’s technology combines open-source tools with a SaaS offering, providing full automation for determining the minimum access required for each service based on Intent-Based Access Control (IBAC), then automatically configuring network and cloud infrastructure accordingly.
Otterize previously raised a $11.5 million Seed round, backed by Index Ventures, Dig Ventures, and Vine Ventures, as well as angel investors from leading tech firms such as Shopify, Snyk, Robinhood, Armis, Slack, GitHub, VMware, and Salesforce.
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“Joining Cyera is an amazing next step for our team. From the get-go, the strong culture fit, exceptional talent, and strategic clarity of Cyera stood out to us,” said Greenwald and Shoshan. "We’re excited to help drive their continued rapid growth and innovation in data security. A special thanks to our investors without whom this wouldn’t have been possible: Index Ventures for their early belief in our vision, Dig Ventures for sharpening our developer focus, and Vine Ventures for their unwavering support and for always being a thoughtful sounding board."
Founded in 2021 by Yotam Segev (CEO) and Tamar Bar-Ilan (CTO), both graduates of the elite Talpiot program and veterans of Unit 8200, Cyera develops an AI-powered platform that helps organizations discover, classify, and protect sensitive data, wherever it resides. The company operates in the global data security market, currently valued at $24 billion.
