Israeli Cybersecurity Startup To Be Acquired For $250 Million

Israeli cybersecurity consulting startup Sygnia announced today it will be acquired by Temasek, a global investment company headquartered in Singapore. The financial terms of the deal were not disclosed but a source familiar with the transaction said it is worth $250 million.

The acquisition highlights the growing significance of cybersecurity to investors around the world, the value placed on top-notch cybersecurity talent, and the continuing rise of Israel as a cybersecurity powerhouse.

An important aspect of being a powerhouse is providing VCs with excellent returns on their investments. Israeli cybersecurity startups raised over $847 million in 2017, up 23% from 2016. Exits, not including IPOs, totaled $1.3 billion in 2017, with an average exit valuation of $130 million. The average amount of capital raised by these startups was just above $17 million, and it took 5.5 years on average for a company to be acquired.

Founded in 2015, Sygnia came out of stealth only a year ago. Unlike most other cybersecurity startups which develop specific cybersecurity products, Sygnia has focused on cybersecurity consulting and response to complex and sophisticated cyber attacks. Maintaining a very low public profile, the company grew purely on personal recommendations and has often been described as a “Cyber Security Delta Force.” It has developed a reputation for speed and decisiveness in responding to attacks and helping Fortune 100 companies build their cyber resilience.

The acquisition will allow Sygnia to grow its resources and expand its global reach. It will continue to operate independently and its leadership team, including Founder and CEO Shachar Levy and Chairman Nadav Zafrir, will remain at their respective roles, as well as co-founders Ariel Smoler and Ami Kor.

Zafrir is also CEO of Team8, a cybersecurity incubator cum think tank which provided Sygnia with its seed investment, the only funding it has received to date. “In cyberspace,” Zafrir told me last year, “it’s never innovation for the sake of innovation. It’s almost warfare sometimes. You have to fight back.”

Sygnia will continue to fight back, and now will also collaborate with Temasek portfolio companies. Temasek believes Sygnia has exceptional capabilities and a proven record of bringing value to the organizations it works with. The acquisition will further strengthen Temasek’s footprint in cybersecurity and it is part of its vision of meeting the challenge of cybersecurity to economic prosperity and national security. – Forbes