U.S. cyber giant Palo Alto Networks will announce in the coming days the acquisition of Israeli cybersecurity company Dig Security, Calcalist has learned.
The negotiations between Palo Alto and the Israeli firm, revealed by Calcalist last month, have continued despite the breakout of the war between Israel and Hamas and an official announcement on the completion of the deal, estimated at a total of $300-400 million, is expected in the coming days.
Calcalist revealed last month that Palo Alto is in discussions to purchase Dig Security, which develops cloud data security solutions. The startup secured a $34 million Series A investment in September 2022. The round was led by San-Francisco-based venture capital firm, SignalFire, with participation from Felicis Ventures, Okta Ventures and Team8. Dig’s Series A brought its total funding to $45 million less than a year after its Seed round in October 2021. Its Seed round included CrowdStrike, through its Falcon Fund, and CyberArk, alongside Merlin Ventures.
Dig was founded in 2021 by Dan Benjamin, Ido Azran and Gad Akuka, three veteran entrepreneurs who’ve previously founded successful companies that were acquired by major firms. They also gained experience at tech giants including Google and Microsoft.
Palo Alto, founded in 2005 by Israeli Nir Zuk, is the world’s largest cyber company in terms of market cap.
The company employs approximately 1,000 people at its Israeli development center, which was initially built through the acquisition of several startups. Palo Alto most recently purchased Cider Security for $300 million in November 2022, and had previously acquired seven other Israeli startups, including Bridgecrew Technologies for $156 million in February of 2021, Cybera in 2012 for $200 million, LightCyber in 2017 for $105 million, and Secdo in 2018 for $100 million. In 2019, it acquired Twitslock for $410 million, PureSec for roughly $100 million, and Demisto for $500 million.
