Microsoft Reportedly Buys Cloud Security Firm Adallom for $320 Million
The company snaps up the cloud security and risk management specialist in a deal that ranks as its biggest Israeli acquisition, according to reports.Microsoft is doubling down on its cloud-first product strategy. The Redmond, Wash., software maker has acquired Adallom, a cloud security startup, for approximately $320 million, according to a July 19 report from Globes, an Israeli business news organization. While Adallom lists a Palo Alto, Calif., address as its headquarters, the company's research and development activities are based in Tel Aviv, Israel. Founders CEO Adam Rappaport, CTO Ami Luttwak and Roy Reznik, vice president of research and development, all hail from the Israel Defense Forces elite tech units, according to the report. If the acquisition along with its $320 million price tag is confirmed, it will mark the biggest Israeli tech buy from the software giant. When asked to confirm the deal, a Microsoft spokesperson declined to comment. On April 14, Adallom announced it had raised $30 million in a round of funding backed by Hewlett Packard Ventures, Rembrandt Venture Partners, Sequoia Capital and Index Ventures. A week later at this year's RSA Conference in San Francisco, HP announced it was integrating Adallom's technology into its Cloud Access Security Protection Platform. Founded in 2012, the company has raised $49.5 million to date.
Adallom's platform employs an advanced heuristics engine and insights from its own labs to provide secure access to cloud applications and third-party software-as-a-service (SaaS) providers, including Salesforce, Google Apps, ServiceNow, Ariba, Box, Dropbox and Microsoft Office 365. The company touts that it has been able to thwart a new generation of cloud-aware threats, including a variant of the Zeus malware that targeted Salesforce and a vulnerability that made it possible to hijack Office 365 identity tokens.