Palo Alto Networks Acquires Israeli Dig Security for $315 Million with Potential for More

Palo Alto Networks, a prominent player in the cybersecurity industry, has announced its acquisition of Dig Security, an Israeli company known for its cutting-edge technology in real-time detection and response to information leakage threats from various cloud platforms. While the official acquisition amount was not disclosed in the announcement, reliable sources suggest the deal is valued at approximately $315 million, with potential for additional tens of millions of dollars to be added.

Dig Security, founded just two years ago, boasts about 100 employees, the majority of whom will be joining Palo Alto Networks as part of this acquisition. Notably, Merlin Ventures, a significant investor in Dig Security, is celebrating its second successful exit in the last six months.

Early-stage investors who initially poured about $20 million into the company are expected to see a remarkable return, now valued at around $400 million. Late investors, who contributed tens of millions of dollars, are also set to register substantial returns.

Dig Security has earned global recognition as a leader in the Data Security Platform Management (DSPM) and Data Detection and Response (DDR) cyber categories. These categories play a pivotal role in safeguarding information for modern organizations operating in cloud-based environments. With the ever-growing importance of AI and data protection in the cloud, Dig Security has amassed an impressive list of global clients and achieved substantial revenue within just two years since its inception.

The deal was led by Liran Greenberg, co-founder and director at Team8, the company that had been involved with Dig Security from its seed round and remained the largest shareholder.

A senior industry official involved in the deal highlighted the uniqueness of the acquisition, which began before a major geopolitical crisis and concluded amidst challenging times. Palo Alto Networks demonstrated a strong commitment to Israel, despite the circumstances. The cybersecurity industry, in particular, has remained resilient, experiencing a surge in merger and acquisition activity. As the world's focus on cybersecurity continues to grow, many organizations are increasing their cyber budgets.

Liran Greenberg, co-founder and director of Team8, emphasized the significance of this acquisition happening during challenging times, showcasing global trust in the Israeli economy and high-tech industry's resilience.

Dan Binyamin, founder and CEO of Dig Security, expressed his pride in the company's remarkable achievements in such a short period and his excitement about the joint journey with Palo Alto Networks.

Dig Security was established in 2021 by Dan Binyamin, Gad Akoka (VP of Technologies), and Ido Ezran (Director of Research and Development). These three founders, all graduates of elite technological units in the Israeli army, brought their rich industry experience to create a successful venture. Their paths crossed through their military service in Unit 8200, which led to a collaboration that has now culminated in the company's acquisition.