Cisco Acquiring Israeli-founded Info Security Firm CloudLock for $293 MJun. 29, 2016
Cisco Systems, the California-based global networking technology firm, is acquiring CloudLock, a startup founded by Israelis, for $293 million in cash.
CloudLock has developed information technology that helps companies monitor the use of sensitive information and how it is shared within the organization and with people on the outside. Founded in 2007, it is headquartered in Waltham, Massachusetts, but also has several dozen staff at a development center in Israel.
In addition to the nearly $300 million that stakeholders in the company will be receiving, the company’s 150 or so employees will get a package of bonuses that will boost the purchase price from Cisco’s standpoint. CloudLock’s operations will be integrated into Cisco’s existing corporate structure.
Cisco is among the most active multinational high-tech firms in Israel and its chairman, John Chambers, is visiting Israel this week. It has a development center and investment activity in the country, and is involved in a wide range of ventures in Israel.
Since 1998, it has invested more than $2 billion in acquisitions in Israel (not including NDS, which was acquired in 2012, when it was no longer a startup and had changed hands several times before Cisco bought it.) At the beginning of this year, Cisco purchased the Caesarea company Leaba Semiconductor for $320 million. Cisco has also made investments in about 25 Israeli startups that it has not acquired.
CloudLock was founded by its CEO Gil Zimmerman, its business development vice president, Tsahy Shapsa, and Ron Zalkind, its chief technology officer. The company has raised about $38 million since its founding. Its first fund investor was the Cedar Fund. C