Google buys Israeli security startup Siemplify for $500 mln: Source

Alphabet Inc-owned Google said on Tuesday its cloud division has acquired Israeli cybersecurity startup Simplelife, as the US tech giant expands its security offerings amid rising cyber-attacks.

The two companies did not disclose financial details of the deal, but a source familiar with the matter said Google paid Siemplify about $ 500 million in cash.

The deal came after Google pledged to US President Joe Biden last August to invest $ 10 billion in cybersecurity over the next five years, amid a surge in cyberattacks and data breaches.

Led by co-founder and CEO Amos Stern, Siemplify provides security orchestration, automation and response solutions. It has raised $ 58 million from investors, including G20 Ventures and 83North.

The source added that through a partnership with Google Cloud, Siemplify attracted buyer’s interest as it was in the process of raising a new round of private equity.

Since the pandemic started in 2020, Google's revenue from the cloud business has nearly doubled to nearly $ 5 billion as businesses switch to working from home. The need to protect yourself and guard against security threats has grown in tandem as big corporates have also beefing up on cybersecurity products.

Google said the Siemplify platform would be integrated into its own cloud and serve as the foundation for the capabilities it will invest in.

The buyout, the first of an Israeli cybersecurity company at Google, will help the tech giant tap into the vast pool of cybersecurity talent in the Middle Eastern country.

Guggenheim Securities advised Siemplify on the transaction.

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