Report: Microsoft Buying Cybersecurity Firm Hexadite for $100M
Microsoft is acquiring cybersecurity startup Hexadite for $100 million, according to a report by Israeli publication Calcalist.
Xconomy has not yet confirmed the report. A Microsoft spokesperson said the company has “nothing to share at this time.” Hexadite CEO and co-founder Eran Barak and the company’s public relations representative have not yet responded to requests for comment. An anonymous source reportedly told TechCrunch the deal is still in progress but will likely be announced in a couple of weeks.
Hexadite was founded in 2014 in Israel and raised at least $10.5 million from investors, including Hewlett Packard Ventures, TenEleven Ventures, YL Ventures, and former Microsoft corporate vice president Moshe Lichtman. The company’s headquarters are now in Boston, and it has a research and development office in Tel Aviv.
Hexadite’s software connects with customers’ existing cyber threat detection systems and uses artificial intelligence technologies to automate and speed up the process of investigating and resolving cyber breach alerts, according to the company.
Hexadite is part of a growing emphasis in cybersecurity on A.I. and automation tools, which the industry says can help lighten the workload of short-handed security teams and free them up to focus their energy on the largest and most complex threats.
In December, Hexadite spearheaded the creation of a cybersecurity industry group—the Automated Security Alliance Program, or ASAP—that aims to more tightly integrate the members’ products and advance efforts to automate key security processes. Alliance members include Carbon Black, CrowdStrike, Cylance, Cybereason, and Palo Alto Networks.
Israel has been fertile ground in recent years for Microsoft’s cybersecurity deals. The Redmond, WA-based company acquired Aorato in 2014 and Adallom and Secure Islands in 2015. In January, Microsoft invested in Team8, a cybersecurity startup studio in Israel.