IBM Acquires Israeli Startup Polar Security for $60 Million
IBM has acquired Polar Security, an Israel-based startup that offers a platform for data security posture management. The deal is reportedly worth around $60 million, and the acquisition is expected to be announced formally this week. Polar Security’s technology enables auditing and tracking of cloud data flows and access within a company network, helping organizations address security vulnerabilities. While it is unclear whether IBM made the acquisition for internal purposes or to strengthen its security portfolio, the company already has extensive participation in the field of security through software, managed security, consulting services, and previous acquisitions.
Polar Security emerged from stealth mode over a year ago with $8.5 million in funding from Gilot, IBI and various other investors. The company was co-founded by cybersecurity veterans Dov Yoran (Chairman), Guy Shanny (CEO), and Roey Yaacovi (CTO). It is not yet clear which of them or how many staff will come with the acquisition nor who their current clients are. A case study on the site detailed work done for Ocrolus; two of the co-founders previously worked in cybersecurity for the Israeli government in the Prime Minister’s office.
The growth of cloud services has opened doors to new complexities when it comes to data storage, usage, accessibility, regulation compliance across countries among others. Startups such as Laminar, CrowdStrike Checkpoint Zscaler have all been working on tools to help address these challenges while acquiring startups such as Canyon by Zscaler and Valtix by Cisco demonstrate granular focus on specific areas such as supply chains and multi-cloud observability respectively.
It appears that Datadog had also been interested in acquiring Polar Security but lost out to IBM. Coincidentally Datadog has also been rumored to be interested in another posture management focused cybersecurity startup out of Israel – Laminar – which might be acquired for between $200 million and $250 million. Other potential buyers include Rubrik.
As cloud services continue to grow in popularity, the need for data security becomes increasingly paramount. The acquisition of Polar Security by IBM is a clear indication that tech giants are taking this issue seriously and investing heavily in innovative startups to address it.
It is widely suggested that, TechCrunch: “We will update this post as we learn more.”