By Steven Scheer
JERUSALEM (Reuters) -Israeli cyber security firm Cato Networks said on Wednesday it was buying cyber startup Aim Security, its first ever acquisition, and raising another $50 million in a private funding round.
Cato also said it had surpassed $300 million in annual recurring revenue.
It did not disclose how much it was paying for Aim but sources close to the deal said it was around $350 million.
Cato in June raised $359 million in a funding round, valuing the cybersecurity firm at more than $4.8 billion, as investors bet on growing demand for artificial intelligence-driven security and networking solutions.
An uptick in sophisticated cyberattacks has prompted fears of operational disruptions among companies and an increase in investor interest in AI-powered cybersecurity providers.
The latest funding brings its total raised in the round to $409 million, it said, adding the financing took place on the same terms and valuation.
Cato, founded in 2015 by Shlomo Kramer and Gur Shatz, combines network services and security into a single cloud platform known as secure access service edge (SASE).
“AI transformation will eclipse digital transformation as the main force that will shape enterprises over the next decade,” said Kramer, who is CEO of Cato Networks.
“With the acquisition of Aim Security, we’re turbo-charging our SASE platform with advanced AI security capabilities to secure our customers’ journey into the new and exciting AI era.”
(Reporting by Steven Scheer; Editing by Chizu Nomiyama)
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