TEL AVIV—Microsoft Corp. has signed a letter of intent to buy
Israel-based cloud information-security company Adallom Inc.,
according to two people familiar with the matter. The expected
price of the all-cash deal is about $320 million, according to one
of the people.
Microsoft declined to comment. A representative for Adallom
wasn't immediately available to comment.
If completed, the deal would be Microsoft's fourth acquisition
in Israel since the start of 2015. Israeli financial newspaper
Calcalist previously reported the deal.
Founded in 2012, Tel Aviv-based Adallom develops and markets a
service aimed at ensuring the security of cloud-based applications.
It offers its services to customers using cloud applications such
as Microsoft's Office 365, Google Inc.'s Google Apps, and the
applications offered by Salesforce.com Inc. and ServiceNow Inc.
Adallom's service monitors the use of the cloud application by
individual employees, identifying patterns and then singling out
anomalies as possible breaches. Competitors include Skyhigh
Networks Inc., Elastica Inc. and CloudLock Inc.
Adallom's customers include SAP SE, LinkedIn Corp. and Netflix
Inc.
In January, Microsoft bought Israel-based Aorato Ltd., a company
that develops software that monitors access to central
communication components in enterprise IT systems.
According to the people familiar with the matter, Adallom, which
employs 90 people world-wide, will continue to operate from Israel,
building up Microsoft's cybersecurity-focused operations in the
country.
Write to Orr Hirschauge at Orr.Hirschauge@wsj.com
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