Microsoft acquires Israeli cloud security startup Adallom for $320 million

Assaf Rappaport,   CEO Adallom

Microsoft has reportedly acquired an Israeli data security startup,  Adallom, for a price believed to be in the region of $320 million.

Adallom was founded in 2012 by CEO Assaf Rappaport, Ami Luttwak and Roy Reznik, who are former members of the Israeli Intelligence Corps’ Unit 8200 and alumni of the Talpiot program.


This will be Microsoft’s largest-ever acquisition in Israel. Microsoft is also going to open a cyber security operation in Israel.

According to the Adallom, the founders created their startup with the adage that SaaS as a class is secure but the way employees actually utilize SaaS is not. In November 2013 Adallom launched a complete security solution that audits activities performed in SaaS applications and develops intelligence to predict and protect from IT security issues, providing SaaS end user enablement while maintaining IT control and visibility.

Globes reports that the company has raised $49.5 million to date and investors include Rembrandt Fund, Sequoia Capital and Index Ventures. In April, just three months ago, Adallom raised $30 million including an investment by HP, that company’s first-ever investment in an Israeli start-up.

Adallom is headquartered in Palo Alto, California with its Israel development center in Tel Aviv’s Ramat Hahayal.

Last week Microsoft acquired FieldOne Systems for a reported $39 million. Based in New York, the software management company was founded by Satmar Haredi Shlomo Boim.

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