IBM to acquire Israeli data security company Trusteer for up to $1 billion; IBM’s 13th Israeli acquisition has an estimated $100 million in yearly revenues

IBM to acquire Israeli data security company for up to $1 billion

August 15, 2013 6:25am

JERUSALEM (JTA) — IBM, the American multinational technology and consulting corporation, has agreed to acquire an Israeli data security company for an undisclosed sum, believed to be up to $1 billion. Trusteer, which has locations in both Tel Aviv and Boston, develops software to help businesses protect themselves against financial fraud and security threats. Upon the official closing of the deal, Trusteer will join the IBM Security Systems organization, IMB announced Thursday. IBM is forming a cybersecurity software lab in Israel where Trusteer and IMB researchers will work on advanced software to address more complicated cyber threats. This is IBM’s largest ever acquisition in Israel, according to the Israeli business daily Globes. The purchase price is believed to be between $800 million and $1 billion.Meanwhile, Apple has agreed to buy the Israeli start-up Matcha.tv, the website VentureBeat reported late on Tuesday.

Matcha, which shut down in May, is a second screen TV/video app that allows users to find out what shows are available on cable TV providers, streaming video services, and digital video stores and makes recommendations based on the user’s viewing habits.

The purchase price is believed to be between $1 million and $1.5 million.

 

IBM buys Israeli data security co Trusteer

Update: Financial details were not disclosed, but market estimates put the price at around $700 million.

15 August 13 09:31, Yossi Nissan

IBM has announced the acquisition of Israeli data security company Trusteer. Financial details of the transaction were not disclosed, but according to market estimates the price is $630 million, plus some tens of millions of dollars that will be paid directly to the employees. The deal is expected to close in the third quarter, subject to the usual conditions.

This is IBM’s largest ever acquisition in Israel, and it will mean huge gains for Trusteer’s backers. Only $10 million have been invested in the company.

Trusteer provides software solutions that help enterprises to protect themselves from financial fraud and sophisticated security threats. Seven of the top ten US banks and nine of the top ten UK banks use Trusteer’s solutions. IBM says in its announcement that cloud-delivered security solutions by Trusteer will complement more than 100 Software as a Service (SaaS) solutions offered by IBM.

IBM will set up a cybersecurity software lab in Israel that will bring together more than 200 Trusteer and IBM researchers and developers to focus on mobile and application security, advanced threat, malware, counter-fraud, and financial crimes. This lab is an addition to IBM’s existing research and development facilities in Israel.

“Trusteer’s expertise and superior technology in enterprise endpoint defense and advanced malware prevention will help our clients across all industries address the constantly evolving threats they are facing,” said Brendan Hannigan, General Manager, Security Systems Division, IBM. “Together with IBM’s capabilities in advanced threat detection, analysis and remediation, we will now be able to offer our clients several additional layers of defense against sophisticated attackers.”

“The way organizations protect data is quickly evolving,” said Mickey Boodaei, CEO, Trusteer. “As attacks become more sophisticated, traditional approaches to securing enterprise and mobile data are no longer valid. Trusteer has helped hundreds of large banks and organizations around the world defeat thousands of sophisticated attacks using innovative solutions that combine intelligence, cloud, mobile, and desktop technologies.”

Trusteer was founded in 2006 by Mickey Boodaei, Rakesh Loonkar, Amit Klein, Shmulik Regev, and Eldan Ben-Haim and is backed by US Venture Partners and Shlomo Kramer. It has offices in Israel and in Boston.

 

IBM acquiring Israeli startup Trusteer for an estimated $800 million

Company with offices in Israel and Boston is IBM’s 13th acquisition in Israel and another notch in the belt of investor Shlomo Kramer, best known for co-founding Check Point Software Technologies.

By Michal Ramati and Inbal Orpaz | Aug. 15, 2013 | 1:19 PM

IBM announced its acquisition of Israeli startup Trusteer on Thursday morning, in a deal estimated to be worth $800 million.

The Israeli data security software company is IBM’s 13th Israeli acquisition and currently has an estimated $100 million in yearly revenues. Following the acquisition, IBM plans to create a lab in Israel where former Trusteer employees will work alongside current IBM researchers and software developers on data security solutions for apps and mobile platforms, as well programs to tackle malware and computer-based financial fraud.

Trusteer was co-founded by CEO Mickey Boodaei, President Rakesh Loonkar, CTO Amit Klein, VP Research and Innovation Shmulik Regev and VP R&D Eldad Ben-Haim, and received early backing from investor and board member Shlomo Kramer. Kramer is a prominent figure in Israel’s data security community known for being one of the founders for local software giant Check Point Software Technologies. The company has more than 200 employees today, most of them in Israel. The company’s headquarters are located in Boston. Trusteer is one of many data security companies in Boston, including the Israeli startups Cyber-Ark, BioCatch and CloudLock.

IBM’s Israel operations are spread out across 14 locations, comprising the largest R&D center outside the United States, with close to 1,100 employees before the Trusteer acquisition. The company’s last acquisition in Israel was the software company CSL International for financial terms that were not disclosed but believed to be between $10 million and $20 million. IBM’s largest previous acquisition in Israel was that of software startup Worklight in the beginning of 2012. The terms of that deal were also not publicly disclosed, but the deal was believed by industry sources to have been worth $95 million. Worklight was founded by Shahar Kaminitz, who previously served as an executive at local software heavyweight Amdocs.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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