Entrepreneurship

U.S. based Rapid7 acquires Israeli cyber startup Alcide.io for $50M

Read more at www.geektime.com

American cyber-security giant Rapid7 will acquire Alcide, an Israeli startup that develops code-to-production Kubernetes security. The companies have yet to reveal the acquisition amount, but reports estimate the deal in the $50 million range.

Kubernetes security platform

Alcide.io deploys Microservices Firewall, which provides micro-segmentation in combination with application awareness that alerts to threats in the background. The ML-based firewall enables users to configure, implement, and enforce security policies on different cloud environments. The platform enables DevSecOps teams complete visibility of all active data-centers, cloud services, and organizational applications (including Dockers and virtualization technologies). The company aims to provide simplified and convenient security measures for enterprises, regardless of platforms and cloud services (Bare-Metal, VM, Container, Serverless). Alcide’s cyber-defense platform provides real-time analysis and a complete toolkit to help prevent malicious attacks and theft of sensitive data.

On the acquiring side, U.S.-based cyber-security firm Rapid7, which was founded in 2000, is publicly-traded on NASDAQ, and valued at $4.5 billion.

Launching a new Israeli R&D center

Alcide was founded in 2016 by Ranny Nachmias, who has since left to head Intel Ignite; and CTO Gadi Naor. Serial entrepreneur Amir Aharoni joined the company as Chairman in 2018. Amir Ofek, formerly CEO of Cyberint, has been leading Alcide for the past year and a half, leading up to the acquisition.

To date, the Israeli company has raised $15 million from CE Ventures, Israeli firm Elron, and Intel Capital. Elron, an early investor in the company, held 24% stock in Alcide and is expected to earn $11.5 million from the deal, which gives us a hint into Alcide.io’s roughly $50 million valuation.

Alcide CEO Amir Ofek noted that “today marks a groundbreaking new chapter in Alcide.io’s journey. I am extremely proud to take part in multinational cyber giant Rapid7’s initial Israeli footprint. Alcide.io is excited to join the Rapid7 team because of a shared commitment to providing our customers with innovative cloud security solutions. Furthermore, this marks an opportunity to continue reinventing Kubernetes-based infrastructure security, and reach a wider range of customers.” Alcide also communicated that its 30-person team will join the acquiring company at its new Israeli R&D center.

Read more at www.geektime.com

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