Google Acquires Israeli Security Startup Siemplify for $500 million
Alphabet-owned Google announced the acquisition of Israeli cybersecurity startup Siemplify by its cloud division on Tuesday, as the US tech giant expands its security offerings in the face of rising cyber attacks.
The financial terms of the transaction were not disclosed by the companies, but a source familiar with the matter stated that Google paid approximately $500 million in cash for Siemplify.
The agreement follows Google’s pledge to US President Joe Biden last August to invest $10 billion in cybersecurity over the next five years, in the face of a significant increase in cyber attacks and data breaches.
Amos Stern, co-founder and CEO of Siemplify, provides security orchestration, automation, and response solutions. It has raised $58 million in funding from investors such as G20 Ventures and 83North.
Siemplify piqued the buyer’s interest with a partnership with Google Cloud, the source added, as it was in the process of raising a new round of private capital.
Since the pandemic began in 2020, Google’s cloud revenue has nearly doubled to around $5 billion as businesses shifted to working from home. The need to protect and hedge against security threats has increased in tandem, with large corporations also stockpiling cybersecurity products.
Google stated that Siemplify’s platform would be integrated into its cloud and would serve as the foundation for the capabilities in which it will invest.
The deal, Google’s first with an Israeli cybersecurity firm, will allow the tech giant to tap into the Middle Eastern country’s deep pool of cybersecurity talent.
Siemplify was advised by Guggenheim Securities on the transaction.
