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$165m

Valuation: $165m

Acquisition
Total Funding000k
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CyberX, established in 2013 by co-founders Omer Schneider and Nir Giller, developed a specialized cybersecurity platform focused on safeguarding industrial control systems (ICS) and Operational Technology (OT) networks. The founders, blue-team experts with a background in defending critical national infrastructure for the Israel Defense Forces (IDF), identified a significant security gap in the rapidly connecting industrial world. Schneider, the former CEO, and Giller, the former CTO, leveraged their experience in national cybersecurity to address the vulnerabilities emerging from the convergence of IT and OT environments.

The company's core business centered on providing a robust solution for reducing risk from unmanaged and often unpatchable Internet of Things (IoT) and ICS devices. CyberX served clients across various critical sectors, including energy providers, pharmaceutical companies, and national utilities. Its business model involved selling its industrial cybersecurity platform, which offered continuous monitoring and vulnerability management, either for on-premises deployment, cloud-connectivity, or hybrid models.

The CyberX platform's primary function was to provide real-time visibility into complex industrial networks, automatically discovering and mapping all connected assets without disrupting operations. A key differentiator was its patented, machine learning-based behavioral analytics technology, which was specifically designed for machine-to-machine (M2M) communications and specialized ICS protocols. This agentless system could detect anomalous or unauthorized behavior that might indicate a cyberattack, providing real-time alerts and risk assessments. The platform integrated with existing Security Operations Center (SOC) tools like SIEMs and firewalls to unify security governance across both IT and OT domains. In June 2020, recognizing the platform's strategic value in securing the expanding IoT landscape, Microsoft acquired CyberX for a reported $165 million, integrating its technology into what is now Azure Defender for IoT.

Keywords: industrial cybersecurity, operational technology, IoT security, ICS security, network visibility, behavioral analytics, threat detection, asset discovery, Microsoft acquisition, M2M security

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