Cyber company founded by ex-Mossad-head sold for $700m.

The deal helps the Schwarz Group, the world’s fourth-largest retailer and a growing force in cloud computing, to prepare for future challenges regarding IT security.

 A man holds a laptop computer as cyber code is projected on him in this illustration picture taken on May 13, 2017. (photo credit: REUTERS/KACPER PEMPEL/ILLUSTRATION/FILE PHOTO)
A man holds a laptop computer as cyber code is projected on him in this illustration picture taken on May 13, 2017.
(photo credit: REUTERS/KACPER PEMPEL/ILLUSTRATION/FILE PHOTO)

Herzliya-based XM Cyber, a cybersecurity company that was co-founded by former Mossad chief Tamir Pardo, was acquired by Germany’s Schwarz Group for $700 million, the companies said Monday.

The deal helps the world’s fourth-largest retailer and a growing force in cloud computing to prepare for future challenges regarding IT security while offering new growth opportunities for XM Cyber.

“XM Cyber brings an innovative approach to proactively prevent cyberattacks using the attacker’s perspective,” the Schwarz Group said in a statement. “By discovering critical attack paths across on-premises and multi-cloud networks, it helps organizations cost-effectively close security gaps before systems are compromised. The comprehensive knowledge in securing complex hybrid cloud networks is also an essential aspect of this strategic acquisition for the Schwarz Group.”

XM Cyber was founded five years ago by Pardo, Noam Erez and Boaz Gorodissky, all long-time members of Israel’s intelligence community. Israeli-Italian businessman Shaul Shani was the first investor in the company.

The company has raised $48m. in investment funding since its inception. Following the deal, the company will continue to operate independently, offering its full suite of products under its current brand and support structure.

 XM Cyber founders Boaz Gorodissky, Noam Erez, Tamir Pardo. (credit: YORAM RESHEF) XM Cyber founders Boaz Gorodissky, Noam Erez, Tamir Pardo. (credit: YORAM RESHEF)

“XM Cyber brings deep technical understanding and innovation that perfectly complements our portfolio for advanced cybersecurity services,” says Christian Müller, Chief Information Officer of Schwarz Group. “Finding and closing security gaps from an attacker’s perspective is a disruptive approach to the way organizations can proactively protect their networks. XM Cyber’s solution builds on our strong IT security to further protect our customers, partners, and ourselves as a company.”