Tech giant Microsoft recently announced the acquisition of CyberX, the Waltham, Massachusetts-based cybersecurity startup that detects, stops, and predicts security breaches on IoT networks. While the terms of the deal weren't disclosed, Israeli news outlet Globes suggested that Microsoft will pay around $165 million for the company.
In 2018, Microsoft announced it would invest $5 billion into Internet of Things (IoT) devices. IoT is frequently used in industries like manufacturing, energy, agriculture, automotive, and healthcare. The purchase of Bonsai in 2018 was Microsoft's first move into the IoT market. Today, Project Bonsai applies AI to industrial control systems across markets, and the implementation of CyberX's technology will help shield those control systems from cyberattacks.
In April, Microsoft acquired Express Logic, a real-time operating system provider for IoT and devices powered by microcontroller units.
"CyberX will complement the existing Azure IoT security capabilities and extends to existing devices, including those used in industrial IoT, operational technology, and infrastructure scenarios," said Microsoft's cloud and AI security CVP Michal Braverman-Blumenstyk and Azure IoT CVP Sam George in a blog post. "With CyberX, customers can discover their existing IoT assets and both manage and improve the security posture of those devices."
Through the company's technology, users will also be able to view digital maps of thousands of devices connected across a factory floor or within a building. They will also be able to gather information about the devices as well as spot any anomalies.
Founded in 2013 by Nir Geller and Omer Schneider, CyberX provides continuous monitoring and vulnerability management for industrial control systems. The company combines its technology with behavioral analytics and AI-based systems to continuously monitor network activity and detect irregularities that could indicate breaches. Its client list includes two of the top-five U.S. energy providers, a top-five global pharmaceutical company, a top-five U.S. chemical company, and national electric and gas utility providers across Europe and APAC.
Prior to its acquisition, CyberX raised $47 million over five venture capital funding rounds. Investors included Norwest Venture Partners, Qualcomm Ventures, Inven Capital, Glilot Capital Partners, Flint Capital, and OurCrowd.
Confirming the deal with Microsoft in a blog post, CyberX co-founder Schneider said, "Nir and I founded CyberX with the goal of delivering a scalable solution that would be easy to deploy and reduce risk for enterprises worldwide."