The Israeli cyber startup XM Cyber, founded by former Mossad chief Tamir Pardo and other senior members of the defense establishment, was acquired by a European retail giant. The startup was founded just 5 years ago and raised less than $ 50 million
The huge European corporation Schwarz Group, which operates the Lidl and Kaufland brands and is considered the 4th largest retailer in the world in terms of revenue, announced today (Monday) the acquisition of most of the shares of Israeli startup XM Cyber, founded by former Mossad chief Tamir Pardo and senior officials Additional from the defense community, for about $ 700 million.
Simulate an attack without suffocating the network
XM Cyber develops a platform that simulates cyber attacks on organizations, and after the safe “attack” issues a detailed report with the insights from it, and points out the actions required to block future attacks in advance. The company also launched towards the end of 2019 a product that enables attack simulation on AWS environments. The company says it holds dozens of registered patents in the United States and Europe, and allows continuous work without seeming interruption on very large networks.
In 2020, XM Cyber announced the completion of a $ 17 million B round of funding led by Macquarie Capital, Nasdaq Ventures, Our Innovation Fund and Swarth Group, bringing it to a total of $ 49 million. This round was a bit unusual, as in Round A the company raised a higher amount of $ 22 million. At the time, Noam Erez, CEO and co-founder of the company, explained to us that the fundraising was based on the company’s revenues, and hinted that the company is not looking to raise the largest amounts of money it can, but is growing more measured and accurate. Following the Corona Crisis.
Now, as mentioned, XM Cyber announces a sale deal worth $ 700 million – this after raising less than $ 50 million during its 5 years of existence, which is a pretty nice multiplier for its first investors. According to the company, it will continue to operate independently of the company’s offices in Herzliya. The company will now focus on developing its capabilities expansions for the Schwartz Group’s IT infrastructure and cloud services.
Rolf Shumen, who is in charge of the digital division at the Schwartz Group, said in response to the acquisition: “Locating and closing loopholes
Security from an attacker’s perspective is a unique approach to how organizations can proactively protect their networks. XM Cyber’s approach is added to our solid IT security fundamentals in order to continue to protect our customers and partners, as well as ourselves as a company.
Noam Erez, CEO of XM Cyber, said: “I would like to thank the company’s dedicated employees for their years of commitment and professionalism, which are a key and significant part of the company’s success, investors who believed in us along the way and thank international businessman Shaul Shani and Swarth Group, who was the first To believe in our vision and our capabilities, and invest the initial capital that enabled us to establish this unique company. ”
XM Cyber was founded in 2016 by Tamir Pardo, Noam Erez, Boaz Gorodisky and other senior members of the security community. According to LinkedIn data, the company employs about 100 people in its offices, most of them from Israel.
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