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CrowdStrike Deal Values Israeli Firm XM Cyber's Tech at $600 Million
American cybersecurity giant CrowdStrike has acquired the technology, patents, and code of Israeli-German cybersecurity firm XM Cyber in a deal valued at approximately $600 million. The transaction, which was first announced in July, is paid primarily in stock and represents one of the largest sums ever paid for technology rather than an entire company. XM Cyber's platform, which maps and prioritizes cyberattack routes, will be integrated into CrowdStrike's Falcon product.
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What happened
- 01CrowdStrike acquired the technology and intellectual property of Israeli-German firm XM Cyber for approximately $600 million.
- 02The deal is paid primarily in stock, which surged in value since the initial announcement in July.
- 03XM Cyber was previously sold to Germany's Schwarz Group in 2021 for $700 million.
- 04The transaction excludes XM Cyber's clients and its estimated $450 million backlog of existing orders.
- 05Former Mossad chief Tamir Pardo co-founded XM Cyber in 2016 but is no longer involved with the company.
- 06XM Cyber's technology maps cyberattack routes and will be integrated into CrowdStrike's Falcon product.
- 07Most employees will remain with Schwarz Group, though the company faces restructuring and staff reductions.
- 08Employees will receive tens of millions of dollars in stock option payouts and retention bonuses.
XM Cyber was founded in 2016 by former Mossad chief Tamir Pardo, who is no longer involved, alongside Noam Erez and Shaul Shani. In 2021, the company was sold to Germany's Schwarz Group for $700 million. Under the new agreement, Schwarz Group retains XM Cyber's existing customer base, revenue, and a backlog of signed contracts estimated at $450 million, bringing the pre-deal valuation of the company to over $1 billion.
While CrowdStrike acquires the intellectual property, most of XM Cyber's employees, including CEO Noam Erez and CTO Boaz Gorodissky, will remain with Schwarz Group. The company is expected to undergo restructuring and workforce reductions. Employees are anticipated to receive tens of millions of dollars in stock option payouts, with remaining staff receiving retention bonuses and departing workers receiving severance packages.
Summarized by baba from the reports of 4 newsrooms. Updated
Latest report: Calcalist. Read Calcalist’s originalThe coverage
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