San Jose, California-based Cisco (NASDAQ: CSCO) agreed to acquire CloudLock Inc., a privately held Israeli-American cloud security company based in Waltham, Massachusetts and Tel Aviv, for $293 million in cash and assumed equity awards, plus additional retention-based incentives for CloudLock employees who join Cisco.
CloudLock was founded in 2007 by Israeli alumni of the elite IDF MAMRAM central IT unit, Gil Zimmermann (CEO) and Ron Zalkind (CTO), and Tsahy Shapsa (VP Business Development), a former IDF officer and Israeli Prime Minister’s office security team leader.
Mamram (Hebrew: ממר”ם), the Center of Computing and Information Systems (Hebrew: מרכז מחשבים ומערכות מידע Merkaz Mahshevim UMa’arahot Meida), is the Israel Defense Forces’ central computing system unit, providing data processing services for all arms and the general staff of the IDF.
CloudLock previously raised roughly $35 million in venture capital from Bessemer Venture Partners, Ascent Venture Partners, Cedar Fund and Salesforce.
The company specializes in cloud access security broker (CASB) technology that provides enterprises with visibility and analytics around user behavior and sensitive data in cloud services, including SaaS, IaaS and PaaS.
“As companies are migrating to the cloud, they need a technology partner that can accelerate that transition and deliver critical security capabilities for all their users, apps and data in a seamless way,” said Rob Salvagno, vice president of Cisco Corporate Development. “CloudLock brings a unique cloud-native, platform and API-based approach to cloud security which allows them to build powerful security solutions that are easy to deploy and simple to manage.”
More data, more devices, and the increasingly decentralized way companies do business means that security has to evolve beyond an on-premises approach. CloudLock helps customers accelerate their cloud adoption by delivering security built specifically to meet the realities of today’s cloud-first enterprise. CloudLock’s CASB technology helps customers understand and monitor user behavior and sensitive data in cloud applications, providing greater visibility, compliance and threat protection regardless of whether these applications are fully sanctioned by IT or not.
The acquisition will help accelerate Cisco’s cloud security portfolio, and extend the cloud security offering throughout the enterprise. “Together, we plan to offer the industry’s broadest cloud security protection and enable our customers to realize the benefits of the mobile-cloud era,” the company said.
The CloudLock team will join Cisco’s Networking and Security Business Group under Senior Vice President and General Manager David Goeckeler.
The acquisition is expected to close in the first quarter of fiscal year 2017, subject to customary closing conditions.
Cisco Systems Inc. designs, manufactures and sells networking equipment. The company is the worldwide leader in IT that has been making the Internet work since 1984, helping society and companies securely connect and seize tomorrow’s digital opportunities today. The company has a market capitalization of roughly $140 billion.