Microsoft is Said to Buy Israeli Cybersecurity Startup CyberX
U.S. software gian Microsoft Corp. (MSFT) is reportedly in talks to buy Israeli cybersecurity company CyberX for an estimated $170 million.
The deal is expected to be signed in June, Israeli financial news portal Calcalist reported without saying where it got the information from.
To date, the company has raised $48 million from investors including Qualcomm Ventures, Inven Capital, Northwestern Venture Partners, Glilot Capital Partners, Flint Capital, and OurCrowd.
CyberX, founded in 2013 by Omer Schneider and Nir Giller, both veterans of the Israeli military elite cyber security unit, is headquartered in Boston and has its development center in Israel. The company specializes on security solutions for industrial control systems and on Internet of Things products.
Earlier this year, the U.S. software giant announced plans to open a cloud data center in Israel. The data center will offer cloud services to Israeli customers, starting with Azure and following with Office 365, starting sometime in 2021. Back in 1991 Microsoft set up an Israeli Development center, its first R&D center outside of the US, where about half its employees engage in cybersecurity.
Wall Street analysts have a Strong Buy consensus rating for Microsoft based on a stellar 21 Buys and 1 Hold rating assigned in the last three months. The $197.63 average price target provides investors with 8.3% upside potential in the shares should it be met in the coming 12 months. (See Microsoft stock analysis on TipRanks).
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