The agreement was reached after Google pledged to US President Joe Biden in August to invest $10 billion on cybersecurity over the next five years, citing an increase in cyber attacks and data breaches.
Owned by Alphabet Inc., Google’s cloud division announced the acquisition of Israeli cybersecurity startup Siemplify on Tuesday, as Google expands its security solutions in the face of escalating cyber attacks.
The businesses did not disclose the deal’s financial terms, but a source familiar with the developments said Google paid around $500 million in cash for Siemplify.
The agreement was reached after Google pledged to US President Joe Biden in August to invest $10 billion on cybersecurity over the next five years, citing an increase in cyber attacks and data breaches.
Security orchestration, automation, and response solutions are provided by Siemplify, which is led by co-founder and Chief Executive Amos Stern. G20 Ventures and 83North were among the investors who contributed $58 million.
As it was in the midst of raising a fresh round of private capital, Siemplify attracted the buyer’s interest with a partnership with Google Cloud, according to the source.
As companies turned to working from home, Google’s cloud revenue has nearly risen to around $5 billion since the pandemic began in 2020. The need to protect and hedge against security threats has increased in tandem, with major corporates investing heavily in cybersecurity products.
Google said that Siemplify’s platform will be integrated into its cloud and would serve as the foundation for future capabilities it will invest in.
The acquisition, Google’s first with an Israeli cybersecurity startup deal, will allow Google to tap into the Middle Eastern country’s vast cybersecurity talent pool.
Siemplify was advised on the deal by Guggenheim Securities.