US cybersecurity giant CrowdStrike Holdings (Nasdaq: CRWD) has announced it has agreed to acquire Israeli cloud data runtime security solution company Flow Security. The acquisition will enhance CrowdStrike's cloud security offering with comprehensive real-time data protection spanning endpoint and cloud environments, delivering a cloud data protection platform that secures data in all states. No financial details were disclosed but estimates are that CrowdStrike will pay $200 million. "Globes" first reported talks for the deal in January.
Tel Aviv-based Flow Security was founded by CEO Jonathan Roizin and CTO Rom Ashkenazi. Flow Security is a relatively small company. Flow Security is a relatively small company with about 30 employees who will all join CrowdStrike. The company has raised a total of $15 million in two seed financing rounds, the most recent of which was in August 2022.
Among those who will make a big profit from the sale of Flow Security are the cofounders Roizin and Ashkenazi, Ben Rabinowitz and Yafit Schwartz's Amiti Ventures, which led the company's most recent financing round, Amdocs Ventures, Kmehin Ventures< Singapore's Singtel, and angels including former CyberArk CEO Udi Mokady and former Demisto CEO Slavik Markovich.
Roizin said, "Since our founding, Flow Security has focused on removing the complexity of securing the massive amounts of critical data businesses manage daily. We saw that the market lacked a solution that provided comprehensive protection of the flow of data as it traversed SaaS applications, on-prem, cloud infrastructure, third-party APIs, etc., and that this lack of visibility and control presented a critical risk to the enterprise. We look forward to working with the cloud security leader, CrowdStrike, to bring to market the most extensive cloud data protection solution."
CrowdStrike cofounder and CEO George Kurtz said, "CrowdStrike was born in the cloud and pioneered cloud-native cybersecurity. We have been consistently recognized as the strategic leader in cloud security by delivering the outcomes customers need most from a single, unified platform. With the acquisition of Flow Security, we’re expanding our cloud leadership by protecting data in all states as it flows through the cloud, and are redefining the future of data protection by securing data from code, to application, to device and cloud."
Last September, CrowdStrike bought Israeli cloud security posture management company Bionic.ai for an estimated $350 million.
Flow Security has been active in one of cybersecurity's growing and most in-demand fields with companies seek protection for their cloud databases. Among the Israeli companies in the field are Cyera, Sentra, Eureka, ands larger companies including Wiz and Varonis and foreign companies including Symmetry Systems and Open Ribbon.
Others like Dig Security, Polar Security and Laminar have already been acquired by bigger companies after understanding that they might struggle to compete against so many rivals. Laminar was sold for $250 million to Rubrik after raising $67 million. Polar Security was sold to IBM for $60 million, after raising just $8.5 million, according to PitchBook, and Dig Security was acquired by Palo Alto Networks for $350 million.
Published by Globes, Israel business news - en.globes.co.il - on March 6, 2024.
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