Akamai Technologies has acquired Tel Aviv-based cybersecurity startup Guardicore for $600 million.
Founded in 2013 by CEO Pavel Gurvich, Ariel Zeitlin, and Dror Sal’ee, Guardicore has raised $110 million from 13 investors among them Former Israeli Prime Minister Ehud Barak, North83, Battery Ventures, Qumra Capital, Greenfield, ClalTech, Deutsche Telekom, Dell, Cisco, and Greylock. This exit is a nearly sixfold return on investment in eight years.
Guardicore has created a platform for proactively preventing ransomware and other intrusions through the use of impenetrable secure cells (network micro-segmentation), real-time threat detection, and response.
According to Akamai Guardicore acquisition is expected to generate around $30-35 million in revenue in fiscal year 2022, and that Akamai’s non-GAAP operating margin will be in the region of approximately 29-30 percent. For fiscal year 2023, the business expects to recover to a non-GAAP operating margin of at least 30%. The company intends to report third-quarter 2021 financial results and full year 2021 financial guidance on its next quarterly call, which is currently planned for November 2, 2021.
This is Akamai’s third acquisition in Israel and its largest. First was Cotendo for $30 million in 2011 and ChameleonX for $20 million in 2019.
CEO and co-founder Gurvich said, “Guardicore’s mission is to protect enterprises from damage caused by breaches, like ransomware while safeguarding the critical assets at the heart of the network. The customer can reduce risk holistically across all products, managing from a single console, versus many products and machines. My team and I look forward to joining Akamai to protect the user and the enterprise — no matter what the user is doing or where end-users and workloads are located.”
Akamai CEO Tom Leighton added, “Given the recent surge in ransomware attacks and increasingly stringent compliance regulations, investing in technologies to reduce the spread of malware has become mission-critical. By adding Guardicore’s leading micro-segmentation products to Akamai’s comprehensive portfolio of Zero Trust solutions, we believe Akamai will provide the most effective way to combat ransomware on the market today.”