Cyber unicorn Cato Networks in advanced talks to acquire Aim Security for $350-400 million

Israeli cyber unicorn Cato Networks is in advanced talks to acquire Israeli cybersecurity company Aim Security for about $350-400 million, Calcalist has learned. Aim Security, which specializes in securing AI applications, has raised about $28 million to date across two funding rounds. Its investors include U.S. fund Canaan Partners, YL Ventures, CCL (Cyber Club London), the founders of Wiz, and angel investors from Google, Proofpoint, and Palo Alto Networks.

If completed, this will be the second major acquisition of an Israeli startup in the AI–cybersecurity field this year, following SentinelOne’s $250 million acquisition of Prompt Security. Both companies declined to comment.

Aim Security was founded by Matan Getz (CEO) and Adir Gruss (CTO), who worked on AI platforms in the IDF’s elite intelligence Unit 8200. Aim is developing a platform specifically tailored for AI’s unique threats, including sensitive data exposure, supply chain vulnerabilities, harmful or manipulated outputs and the emergence of attack methods such as jailbreaks and prompt injection.

The rapid adoption of AI tools in organizations has generated real business opportunities but also created unique challenges for CISOs, who must balance regulatory demands and data protection with business goals. In many cases, organizations face a stark choice: either blocking AI use altogether, undermining efficiency and innovation, or allowing unprotected adoption, exposing themselves to significant risks.

In June, Cato Networks, founded and led by Shlomo Kramer, announced a $359 million fundraising round at a $4.8 billion valuation, up from $3 billion in its September 2023 round. The round was led by new investors, including Vitruvian Partners and ION Crossover Partners, alongside existing backers Lightspeed Venture Partners, Acrew Capital, and Adams Street Partners.

The new funding brought Cato’s total capital raised to $1 billion. About one-third of the round was structured as a secondary transaction, with proceeds going to employees rather than the company. Roughly $120 million will be distributed among Cato’s 1,400 employees, half of whom are based in Israel.

Cato reported earlier this year that it had reached an annual recurring revenue (ARR) of $250 million, growing 46% year-over-year, though it remains unprofitable. The company was founded on the premise that traditional security and communications infrastructure has become too costly to maintain, too slow to update, and dangerously fragmented. Its cloud-based unified platform replaces legacy solutions such as firewalls, routers, cloud proxies, and other point systems, offering enterprises a simplified, scalable alternative to secure both networks and data.