Japan is turning to Israeli cybersecurity experts in advance of the 2020 Olympic Games in Tokyo. Photo: Twitter

CTech – Israeli hybrid cloud cybersecurity startup XM Cyber has announced that it is being acquired by Schwarz Group, the world’s fourth-largest retailer and a growing force in cloud computing, for $700 million.

XM Cyber, founded in 2016 by former Mossad head Tamir Pardo, Noam Erez, and Boaz Gorodiski, has developed a technology that simulates organized cyberattacks on companies to help them improve their defenses. The company’s system presents the attackers’ angles with the ability to detect and exploit holes in the network. In addition, it provides a detailed report of the actions required to block such attacks and protect the organization’s assets. By discovering critical attack paths across on-premises and multi-cloud networks, it helps organizations cost-effectively close security gaps before systems are compromised. The comprehensive knowledge in securing complex hybrid cloud networks is also an essential aspect of this strategic acquisition for the Schwarz Group.

XM Cyber completed a $17 million Series B last July led by Macquarie Capital, Nasdaq Ventures, Our Innovation Fund, and Swarth Group. Businessman Shaul Shani is one of the company’s founders and its first investor. To date, the company has raised $49 million.

XM Cyber will continue to operate independently, offering its full suite of products under its current brand and support structure.

“With the backing and international footprint of the largest European retailer, we can accelerate innovation and growth and further strengthen our position in the global cybersecurity market,” said Noam Erez, XM Cyber co-founder and CEO. “I would like to take this opportunity to thank our investors who have supported us along the journey in building this unique company.”

“XM Cyber brings deep technical understanding and innovation that perfectly complements our portfolio for advanced cybersecurity services,” said Christian Müller, Chief Information Officer of Schwarz Group. “Finding and closing security gaps from an attacker’s perspective is a disruptive approach to the way organizations can proactively protect their networks. XM Cyber’s solution builds on our strong IT security to further protect our customers, partners, and ourselves as a company.”