Final hours! Save up to 55% OFF InvestingProCLAIM SALE

Google buys Israeli security startup Siemplify for $500 million - source

Published 01/04/2022, 10:22 AM
Updated 01/04/2022, 04:16 PM
© Reuters. FILE PHOTO: The Google name is displayed outside the company's office in London, Britain November 1, 2018.  REUTERS/Toby Melville
GOOGL
-
GOOG
-

By Krystal Hu and Eva Mathews

(Reuters) -Alphabet Inc-owned Google (NASDAQ:GOOGL) said on Tuesday its cloud division had acquired Israeli cybersecurity startup Siemplify, as the U.S. tech giant expands its security offerings amid rising cyber attacks.

Financial details of the deal were not disclosed by the companies, but a source familiar with the matter said Google paid about $500 million in cash for Siemplify.

The deal came after Google made a pledge to U.S. President Joe Biden last August to invest $10 billion in cybersecurity over the next five years, amid a significant rise in cyber attacks and data breaches.

Siemplify, led by co-founder and chief executive Amos Stern, provides security orchestration, automation and response solutions. It has raised $58 million from investors including G20 Ventures and 83North.

With a partnership with Google Cloud, Siemplify attracted the buyer's interest as it was in the process of raising a new round of private capital, the source added.

Since the pandemic started in 2020, Google's revenue from the cloud business has nearly doubled to around $5 billion as companies shifted to working from home. The need to protect and hedge against security threats has shot up in tandem, with big corporates also beefing up on cybersecurity products.

Google said Siemplify's platform would be integrated into its cloud and serve as the foundation for the capabilities it will invest in.

© Reuters. FILE PHOTO: The Google name is displayed outside the company's office in London, Britain November 1, 2018.  REUTERS/Toby Melville

The buyout, Google's first Israeli cybersecurity firm deal, will help the tech giant take advantage of the Middle Eastern nation's deep pool of cybersecurity talent.

Guggenheim Securities advised Siemplify on the transaction.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.