Tenable set to acquire cyber startup Ermetic for up to $350 million
Tenable set to acquire cyber startup Ermetic for up to $350 million
The Israeli startup, which has raised a total of $100 million to date, has developed a platform that detects and prevents security threats within complex AWS, Google Cloud, and Microsoft Azure environments
Israeli cybersecurity startup Ermetic is in advanced negotiations to be acquired by U.S. company Tenable, Calcalist has learned. The deal is estimated at between $300-350 million and is set to be completed in the coming days.
Ermetic raised a $70 million Series B round of financing in December 2021 led by Qumra Capital with support from new investor Forgepoint Capital and participation from existing investors Accel, Glilot Capital Partners, Norwest Venture Partners and Target Global. The company has raised $100 million in total funding for its security platform that provides multi-cloud protection for global enterprise customers.
Ermetic has developed a comprehensive platform that detects and prevents security threats within complex AWS, Google Cloud, and Microsoft Azure environments. The company was born from a partnership of four experienced cyber entrepreneurs who had all previously sold companies to giant corporations: CEO Shai Morag (founder and CEO of Cyber Secdo Ltd., acquired by Palo Alto Networks), CTO Michael Dolinsky and CPO Sivan Krigsman (co-founders of Aorato, acquired by Microsoft), and CBO Arick Goomanovsky (co-founder of Sygnia, acquired by Temasek).
The startup laid off 30 employees in January, accounting for 17% of its workforce. A third of the employees leaving the company were based in Israel, with all of the departing staff belonging to the marketing, sales, and HR departments. None of those laid off were part of the R&D team.
Ermetic, which paid tens of thousands of dollars to appear on the hit Netflix series Fauda last year, currently employs around 130 people.
This isn’t Tenable’s first acquisition in Israel, with the Nasdaq traded company purchasing Tel Aviv-based cybersecurity company Indegy for around $100 million in cash in December 2019. Tenable set up a development center in Israel following the deal. Tenable is currently traded with a market cap of around $5.2 billion.
