PayPal Doubles Down On Israel: Confirms CyActive Acquisition, New Security HubMar. 11, 2015
PayPal — soon to be spinning off from parent company eBay — today confirmed its latest acquisition and move to build out its payment technology as a standalone business, and provide better protection in the growing problem of security breaches in e-commerce. It is buying CyActive, a specialist in predictive malware detection based out of Israel. And it will use the company’s operations to kickstart a larger security hub in the country, including potentially more acquisitions.
Terms of the CyActive deal are not being reported but local press reports last week leaked out and put the price at $60 million. Specifically, PayPal’s CTO and SVP of payment services James Barrese told TechCrunch that price was “speculative.”
The security center meanwhile will tap into the country’s bigger pool of online security expertise, PayPal’s existing operations in the country and other potential acquisitions.
“The creation of the security center is an extension of the capabilities we have already developed through the success of our Fraud and Risk Detection Center in Tel Aviv, Barrese writes in a blog post.
In an interview with TechCrunch he also pointed to more possible deals in the pipeline. “We’ll continue to make significant investments,” he said.
As with many other security specialists in Israel, CyActive’s co-founders Liran Tancman (CEO) and Shlomi Boutnaru (CTO) have roots in Israel’s military intelligence.
For the full TechCrunch report click here.
See also: PayPal will open a second Israeli development center in Beersheva, based on cyber security company CyActive's offices.