Select Page
Microsoft to Acquire Israeli CyberSec Startup Hexadite for $100M

Microsoft to Acquire Israeli CyberSec Startup Hexadite for $100M

as reported by ExitHub. The startup’s early venture capital investors included Hewlett Packard Ventures, Ten Eleven Ventures, and YL Ventures, who, together with Hexadite founders stand to earn a windfall as a result of the deal. Hexadite was founded in 2014 by Eran Barak (CEO), Barak Klinghofer (CPO) and Idan Levin (CTO), and is based in Tel Aviv. Within 18 months and $2.5 million in seed funding, the startup brought to market the industry’s first security orchestration and automation solution, protecting more than 500,000 devices in customers from the financial services, retail, technology, insurance, manufacturing, telecommunications, life sciences, and healthcare industries. With Hexadite, enterprises can overcome the skills, expertise, time, and resource shortages that plague their security operations centers (SOCs). “Our solution can handle all the variables involved in today’s cyber threats to give customers the ability to investigate, respond, and resolve an ever-increasing volume of incidents in minutes and even seconds,” said Eran Barak, CEO and co-founder of Hexadite. Barak was previously the head of the cyber training and simulation team at Elbit Systems, directing sales and business development for new products for emerging markets. He was also a consultant for Orantech Management Systems Ltd, and served five years in an IDF elite intelligence unit. He received a B.Sc. in Industrial Engineering and Management Science from Technion, Israel’s Institute of Technology. Klinghofer was previously the cyber solutions architect at Elbit Systems, designing solutions for both public and private sectors, and training personnel in National Cyber Security centers. He also was a senior security consultant at COMSEC, and served six years in an IDF elite intelligence unit. He holds a B.Sc. in Computer Science from the College of Management and Academic Studies (COMAS). Levin had previously spent four years at Elbit Systems as a cyber-software engineer and development leader responsible for the product life cycle of the company’s intelligence systems. Prior to his work in the private sector, he served in an IDF elite intelligence unit, where he led the development of several cyber security products and managed various development teams. “When we saw what Hexadite accomplished in such a short amount of time, we wanted to be a part of it,” said Lak Ananth, managing director of Hewlett Packard Ventures. “The ability to automate cyber alert investigations and shut down attacks in seconds gives customers a chance to defend themselves in a way that has never been possible.” “Enterprises are desperate to close the gap between security event detection and resolution,” said Mark Hatfield, co-founder and general partner, Ten Eleven Ventures. “We were very impressed with the maturity of Hexadite’s solution; they are the only company we’ve seen that truly understands how to fully automate the end-to-end incident response lifecycle. Hexadite’s ability to add intelligent automation and orchestration to resolve security events is a great leap forward that addresses a vital need for customers.” “The world’s attention is on cyber security, as cyber threats and hackers continue to evolve and perpetrate devastating breaches,’ said Yoav Leitersdorf, managing partner at YL Ventures. “Automating the entire end-to-end process from alert to investigation through actual resolution is the only approach that allows companies to scale their defenses. Hexadite is at the forefront of the movement to intelligent automation.”]]>

Cyber-Sec Leader Symantec $SYMC to Acquire LifeLock $LOCK for $2.3B

Cyber-Sec Leader Symantec $SYMC to Acquire LifeLock $LOCK for $2.3B

Symantec agreed to acquire Blue Coat Inc., the #1 market share leader in web security, for $4.65 billion from private equity firms Silver Lake and Bain Capital, as reported by ExitHub. In July, provate equity form CVC Capital-backed Avast Software agreed to acquire rival AVG Technologies NV (NYSE: AVG) for $1.3 billion in cash. “LifeLock is a leading provider of identity and fraud protection services, with over 4.4 million highly-satisfied members and growing. With the combination of Norton and LifeLock, we will be able to deliver comprehensive cyber defense for consumers,” said Greg Clark, Symantec’s CEO. “This acquisition marks the transformation of the consumer security industry from malware protection to the broader category of Digital Safety for consumers.” “People’s identity and data are prime targets of cybercrime. The security industry must step up and defend through innovation and vigilance,” said Dan Schulman, Symantec’s chairman. “With the acquisition of LifeLock, Symantec adds a new dimension to its protection capabilities to address the expanding needs of the consumer marketplace.” “After a thorough review of a broad range of alternatives, our board of directors unanimously concluded that Symantec is the ideal strategic partner for LifeLock and offers our shareholders a significant premium for their investment, at closing,” said Hilary Schneider, CEO of LifeLock. “Together with Symantec we can deploy enhanced technology and analytics to provide our customers with unparalleled information and identity protection services.” In the last year, one third of American citizens and over 650 million people globally were the victims of cybercrime. Consequently, more and more consumers are concerned about digital safety, an estimated $10 billion market growing in the high single digits. In the United States alone, the estimated total addressable market is 80 million people. Symantec expects to finance the transaction with cash on the balance sheet and $750 million of new debt. Symantec’s board of directors has also increased the company’s share repurchase authorization from approximately $800 million to $1.3 billion, with up to $500 million in repurchases targeted by the end of fiscal 2017. Given the expected closing in the first calendar quarter of 2017, Symantec expects the transaction to have no impact to its quarter ending December 30, 2016. The transaction is also not expected to have a material impact to Symantec’s fiscal year 2017 financial results, and the company is reaffirming its prior fiscal year 2017 financial guidance at this time: non-GAAP revenue of $4,040 – $4,120 million; non-GAAP operating margin of 27-29%; and non-GAAP earnings per share of $1.12-$1.18. The company is also reaffirming its prior fiscal year 2018 non-GAAP earnings per share guidance of $1.70-$1.80. Symantec expects the transaction to be accretive to non-GAAP earnings per share in fiscal year 2019. Citi and J.P. Morgan Securities, LLC are serving as co-lead financial advisors to Symantec’s Board of Directors (in alphabetical order). Bank of America, Barclays, Citi, J.P. Morgan, Merrill Lynch and Wells Fargo are acting as financial advisors and are providing debt financing commitments to Symantec (in alphabetical order). Fenwick & West LLP is acting as legal advisor to Symantec in connection with the acquisition, and Fenwick & West LLP and Simpson Thacher & Bartlett LLP are acting as legal advisors to Symantec in connection with the debt financing. Goldman, Sachs & Co. is acting as financial advisor to LifeLock. Wilson Sonsini Goodrich & Rosati and Skadden, Arps, Slate, Meagher & Flom LLP are acting as legal advisors to LifeLock.]]>