CrowdStrike acquires Adaptive Shield in $300M deal to boost SaaS security
CrowdStrike acquires Adaptive Shield in $300M deal to boost SaaS security
The Israeli startup’s solutions help security teams manage the organization’s applications, identities, and detect unusual behavior within the SaaS ecosystem.
Cybersecurity giant CrowdStrike is acquiring Israeli cyber startup Adaptive Shield. While the companies have not disclosed the terms of the deal, Calcalist has learned that CrowdStrike will pay around $300 million for the Israeli company.
Adaptive Shield was founded in late 2019 by Maor Bin and Jony Shlomoff. The company raised $10 million from financial giant Blackstone through its growth fund BXG last year. Blackstone, already a client of Adaptive Shield, participated in this investment as part of a strategic agreement to integrate the company’s cybersecurity technology into its own operations.
In October 2021, Adaptive Shield raised $30 million in a Series A round led by Insight Partners, with participation from other investors, including Okta Ventures and Vertex Ventures Israel, headed by General Partner Emanuel Timor.
Despite a significant outage in July due to a faulty update to its Falcon Sensor security software, CrowdStrike's share price has risen nearly 25% this year, giving it a market cap of approximately $75 billion.
Adaptive Shield assists information security teams by monitoring and controlling all aspects of security in cloud environments, continuously identifying potential attacks. Its SSPM and ITDR solutions help security teams manage the organization’s applications, identities, and detect unusual behavior within the SaaS ecosystem.
This acquisition marks CrowdStrike’s fifth in Israel and its second this year. CrowdStrike previously acquired DSPM startup Flow Security for around $200 million in March, six months after purchasing Bionic for $350 million.
“CrowdStrike was built to tackle the toughest cybersecurity challenges, and we drive relentless innovation based on what our customers need to stay ahead of modern threats,” said George Kurtz, CEO and founder, CrowdStrike. “As SaaS and AI adoption grows, every new application brings additional complexity and the risk of misconfigurations across human and non-human accounts that create openings for sophisticated attacks. With the acquisition of Adaptive Shield, CrowdStrike will continue to set the standard for identity-based protection in the cloud, delivering best-in-class SaaS protection from the Falcon platform.”
“Widespread adoption of SaaS applications has rapidly expanded the enterprise attack surface, as shared responsibility models and fragmented security controls make SaaS environments a prime target," said Maor Bin, CEO and co-founder, Adaptive Shield. “Our mission perfectly complements CrowdStrike, stopping SaaS breaches while further accelerating consolidation on cybersecurity's most comprehensive platform. I'm incredibly proud of our team for building the most advanced SaaS security solution, defining the market.”
