Microsoft to buy cloud security specialist Adallom

Microsoft has confirmed its biggest Israeli investment ever with the acquisition of cloud security company Adallom for 0 million (£205 million).

If completed, the deal would be Microsoft’s fourth acquisition in Israel since the start of 2015.

Adallom is a cloud security company based in Israel.

Founded in 2012 by Assaf Rappaport, Ami Luttwak and Roy Reznik, former members of the Israeli Intelligence Corps’ Unit 8200, Adallom offers a cloud access security platform which delivers visibility, governance and protection for cloud applications.

According to a Globes report, Microsoft will use this latest acquisition to carry out its goal of opening a cyber security center in Israel.

A “Cloud Access Security Broker”.

And without doubt, Adallom would act as the central point for MS’s cyber-sec business in Israel. However, we have separately reached out to Microsoft regarding this, and would update the story once we receive a response.

Adallom has said its solutions are created to help enterprises “secure data in any cloud”. Back in December 2013, Adallom gained popularity after it exposed the loophole in the security server of Microsoft 365.

Adallom has 80 employees, including 50 workers at the local development center. In May, Microsoft acquired stylus technology maker N-trig for a reported $200 million.

Terms of the deal were not disclosed but reports cite the acquisition to be worth at least $60 million. The technology is expected to see even wider use with the coming release of Edge, Microsoft’s successor to the Internet Explorer browser, which adds new capabilities for “digital ink” applications.

In January, Microsoft bought Israel-based Aorato Ltd., a company that develops software that monitors access to central communication components in enterprise IT systems.