Adallom, a US-based provider of software to secure cloud-based applications, is set to be acquired by software producer Microsoft for approximately $320m, providing an exit to computing firm Hewlett-Packard (HP), Globes reported yesterday.
Founded in Israel in 2012, Adallom develops software and offers an on-site service that protects applications running in the cloud.
Microsoft is already among the company’s clients and benefitted from Adallom’s technology when, in 2013, it detected a security breach in Microsoft’s productivity suite, Office365.
Adallom is headquartered in the US but maintains its research and development operations in Israel. If the deal does eventually close at $320m, it would mark Microsoft’s biggest acquisition in Israel to date.
Hewlett Packard Ventures, the corporate venturing unit of HP, contributed to a $30m series C round for Adallom in April this year that also included venture capital firms Rembrandt Venture Partners, Sequoia Capital and Index Ventures. The round valued Adallom at $100m, according to Haaretz.
Sequoia and Index previously invested in Adallom’s $15m series B round in January 2014. Sequoia also participated in a $4.5m series A round in 2012, alongside entrepreneur Zohar Zisapel.