Report: Microsoft Plans to Acquire Israeli Cybersecurity Firm Adallom for $320M

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Microsoft plans to acquire Israeli cybersecurity company Adallom for $320 million, according to a report in the Calcalist financial newspaper on Monday. Adallom is a security platform for SaaS applications that can be deployed across devices.

Founded in 2012, Adallom has 80 employees with offices in Israel and the US. Its platform aims to make SaaS applications “as secure as on-premise applications” by combining intelligence into application usage, monitoring of user accounts, and security and compliance. In June, Adallom announced integration with Dropbox for Business.

Adallom also offers a security platform for IaaS, providing security for AWS and Microsoft Azure environments.

In April, Adallom raised $30 million in Series C funding, including a strategic investment by newly launched Hewlett Packard Ventures, Rembrandt Venture Partners, and previous investors Sequoia Capital and Index Ventures.

The acquisition of Adallom would add to several other Microsoft acquisitions in Israel, including the recent acquisition of security software developer Aorato. According to the Wall Street Journal, this would be its fourth acquisition in Israel since the start of 2015. Adallom would continue to operate from Israel and build up Microsoft’s cybersecurity-focused operations in the country, WSJ reports, citing people familiar with the matter.

Israel has been a hotbed for cybersecurity startups and M&A activity, with PayPal and Dropbox among tech companies that have made acquisitions in Israel this year.

Neither Microsoft nor Adallom has made an official statement on the news.


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