Israeli Cyber Firm XM Cyber Sells Technology to CrowdStrike Amid Layoffs
Translated & summarized from Ice by baba
Israeli cybersecurity firm XM Cyber has sold its technology to U.S. company CrowdStrike for approximately $600 million. The deal follows XM Cyber's previous acquisition in 2021 for $700 million. Prior to the sale, XM Cyber laid off 83% of its Israeli workforce, reducing staff from 300 to 50 employees. The company will continue to serve its existing clients.
The story in 6 lines · by baba
- XM Cyber sold its IP technology to CrowdStrike for about $600 million.
- The company laid off 83% of its 300 Israeli employees before the sale.
- This is XM Cyber's second major exit in four years.
- XM Cyber was previously acquired for $700 million in 2021.
- Former Mossad chief Tamir Pardo is a co-founder of XM Cyber.
- XM Cyber will continue to serve its existing customers.
Israeli cybersecurity firm XM Cyber has sold its intellectual property (IP) technology to U.S. data security giant CrowdStrike for approximately $600 million in cash and stock. This marks the second major exit for XM Cyber in four years. In November 2021, the company was acquired by German retail and investment conglomerate Schwarz Group for about $700 million, just five years after its founding.
However, the deal comes amid significant workforce reductions. According to a report by "Calcalist," XM Cyber laid off nearly all of its 300 employees in Israel, leaving only 50, representing an 83% reduction. The company stated that following the technology sale, it would undergo a reorganization to align its workforce with new tasks.
XM Cyber was established in 2016 by former Mossad chief Tamir Pardo, who served as the company's president, alongside co-founders and former intelligence community members Noam Erez (CEO) and Boaz Gurdisky (CTO). They developed groundbreaking technology, leading to two high-value exits in a short period.
CrowdStrike's filings with the U.S. Securities and Exchange Commission (SEC) indicate the acquisition is solely for XM Cyber's technology, a rare model for deals of this magnitude. XM Cyber will retain its existing customers and revenue streams, continuing to provide full service. Market estimates suggest XM Cyber had over $450 million in contracted backlog, implying a total company value exceeding $1 billion prior to the sale, yielding a significant profit for the Schwarz Group.
