Microsoft buys Islraeli security startup Adallom for $320, plans Israel

It’s unclear what Microsoft may have planned for Adallom and whether the company will allow the Israel-based startup to continue to operate independently or build its technology into its own cloud services, like Azure and Office 365.

Adallom, which is headquartered in Palo Alto and has a research-and-development facility based in Tel Aviv, has been acquired by Microsoft for 0 million in cash, according to news reports.

The Adallom cyber security company was founded in 2012 by CEO Adam Rappaport, Ami Luttwak, and Roy Reznik – all graduates of elite IDF technology units.

As Globes rightfully reports, the acquisition takes Microsoft full circle as it was it was Adallom in December 2013 that exposed the break into the security server of Microsoft Office 365, news that garnered widespread reporting at the time.

We reached out to Microsoft and Adallom for confirmation of the pending acquisition. It can secure information stored on Salesforce’s, Microsoft’s or Google’s cloud services and protect it from cyber attacks. It works for any user on any device on any network.

In January, Microsoft bought Israel-based Aorato Ltd., a company that develops software that monitors access to central communication components in enterprise IT systems. Each insight is said to be actionable, so the enterprise is able the apply the applicable policies.

Adallom has raised approximately $50 million from ventural capital firms like Sequoia Capital and Index Ventures, as well as Zohar Zisapel, EMC Corporation and HP.

According separately to Hareetz (who also confirmed the acquisition) the last round of $30 million in April this year was on a $100 million valuation.

First of all, it can invest in security by taking over a company that already has the know-how in this field, and second of all, it can expand its business in Israel by creating a cybersecurity center using this particular firm as the foundation.