British Mimecast an e-mai security company is acquiring Israeli Segasec for about $ 40 million

The British company Mimecast, a leading email and data security company, announced the acquisition of Segasec, a provider of digital threat protection.  With this innovative technology, Mimecast customers can better defend against attacks that leverage fake websites and domains for credential harvesting of their customers, employees, partners, and 3rd party vendors within their supply chains. Hackers are using sophisticated techniques to target organizations of all sizes and in all industries by using their brands as bait to launch attacks. With the acquisition of Segasec, Mimecast can provide brand exploit protection using machine learning to identify potential hackers at the earliest stages of an attack. The solution also is engineered to provide a way to actively monitor, manage, block and take down phishing scams or impersonation attempts on the web. 

The acquisition of Segasec builds on Mimecast’s Email Security 3.0 approach, which helps customers protect their organizations across three key zones: Zone 1, to defend against security threats trying to penetrate the organizational perimeter; Zone 2, for vulnerabilities and threats that exist inside the perimeter; and Zone 3, for attacks taking place outside the perimeter in the larger cybersphere. Segasec’s integrated solution is designed to enhance Mimecast’s Zone 3 protection platform by providing a comprehensive approach to digital risk protection while also enriching its core perimeter defense systems for Zone 1 with intelligence gained from analysis of threats in the wild.

Integration of Segasec with Mimecast’s email and web security services is engineered to further strengthen customers’ cyber resilience by enabling them to block any potentially malicious domains quickly. The integrated solution platform is built to allow organizations to implement a comprehensive cybersecurity strategy capable of dealing with modern-day threats surrounding, inside, and beyond the perimeter.

Segasec was founded in 2017 by Elad Schulman, CEO of the company and previously general manager of the Israeli branch of OpTier, acquired by SAP (August 2014) and alumnus of Amdocs and Mercury, purchased by HP (August 2006), and Gad Akuka, VP R&D and formerly a senior software developer at SAP, where the two met, as well as an officer at Ofek, the Air Force's software unit. The company’s active chairman is Ido Yablonka, former CEO of Yahoo Israel and president of PureSec, acquired by Palo-Alto Networks (June 2019); other senior executives include COO Tal Hershkowitz, previously working at Deloitte and the Guberman Group, as well as EVP Sales Guri Geva, formerly of Secure Islands, acquired by Microsoft (June 2015).

Segasec was established two and a half years ago, raising only $5 million until the acquisition, thanks to its innovative solutions and quick revenue route; "Contrary to popular belief, examining things without prejudice, Gad and I found that phishing is far from being a solved problem - Segasec’s technology advancements and revenue growth indeed validates the market’s thirst for a satisfactory solution," Schulman adds. 

The first investor in the company was Innogy Innovation Hub, the investment fund of German energy company Innogy SE, managed in Israel by Mickey Steiner. "Our investment in Segasec was a vote of confidence in the team and its innovative technology," says Boaz Kantor, CTO at Innogy's Cyber Ventures, and Director at Segasec. "As an energy utility, Innogy deeply understands the right of customers to trust their service providers. We are pleased to see that Segasec's technology, which protects trusted brands against malicious attacks was quickly picked up by a global leader in email management and security, and we wish Gad, Elad and the rest of the team success in their new way." Segasec's second round of funding was conducted about six months ago, led by the acquiring company, with the entire fundraising amount remaining in the company's bank account.

“Every brand is vulnerable to attacks that abuse and threaten the trust that employees, customers, partners and 3rd party vendors have placed in them,” said Peter Bauer, chief executive officer at Mimecast. “Segasec will allow our customers to take a proactive approach to identifying -- and even potentially preventing -- attacks that imitate their brands using domains they don’t own, while also offering the visibility required to understand how their brands are being misused for malicious intent. Additionally, Segasec’s solutions strongly complement our recent acquisition of DMARC Analyzer, which simplifies the process of protecting against abuse of domains customers do own and continues to strengthen our Email Security 3.0 strategy.”

Segasec’s technology is designed to monitor domains on the internet for suspected malicious activity and continuously surfaces the riskiest ones. By using machine learning and running targeted scans that identify even unknown attack patterns, the solution can help uncover both live attacks and detect upcoming ones at the earliest possible stages, often allowing customers to prevent them all together. Segasec also offers rapid takedown capabilities for active attacks and technology that can limit the use of stolen data. 

“In today’s increasingly digital economy, we rely so heavily on websites and email to interact with businesses in both our professional and personal lives,” said Elad Schulman, chief executive officer and c-founder of Segasec. “As such, brand exploitation has been on the rise, as cybercriminals coopt the brands we depend on and violate our trust. The powerful combination of Mimecast and Segasec will help customers better protect their brands, customers and other external stakeholders, as well as their own employees.”

The Mimecast Segasec solution is designed to enable organizations to:
 

• Protect employees, customers, partners and 3rd party vendors from phishing scams attempting to trick them by abusing domains that are similar to their legitimate branding;

• Identify and protect against attacks where cybercriminals have cloned a website for malicious activities against stakeholders;

• Block and take down both suspicious sites and active scams

• The acquisition of Segasec is not expected to have a material financial impact to Mimecast’s Revenue or Adjusted EBITDA for the third quarter and full year 2020, as guided on November 7, 2019.

This is Mimecast's second acquisition in Israel, following its acquisition of Solebit in June 2018. Boris Vaynberg, Solebit's co-founder and currently the general manager and vice president of the Mimecast R&D center in Israel, added that "Segasec is a great addition to the Mimecast development center in Israel, and the acquisition marks the appreciation the Israeli cyber industry has gained among our senior global management.”

Segasec was represented by attorneys Asaf Harel, Gal Lutker and Aya Neeman from Meitar Liquornik Geva Leshem Tal. Mimecast was represented by Yuval Oren, Adi Gillat, Anat Nachum, Shai Raab and Orly Charas from H-F & Co.                                                     Mimecast (NASDAQ: MIME) makes business email and data safer for thousands of customers and their millions of employees worldwide. Founded in 2003, the company's next-generation cloud-based security, archiving and continuity services protect email and deliver comprehensive email risk management.