Microsoft Corp. (NASDAQ: MSFT) is said to have acquired Hexadite Inc., a security orchestration and automation startup founded by former Israel Defense Forces (IDF) intelligence unit veterans, for $100 million.
Last year Hexadite raised $8 million in a Series A round, 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.”