Microsoft Gears Up For Cybersecurity Treats by Acquires Hexadite

Microsoft announced that it has signed an agreement to purchase Boston-based cybersecurity startup Hexadite. The acquisition hasn’t closed yet. HEXADITE, an Israeli startup that offers artificial intelligence-based cybersecurity services has its headquarters in Boston and has a team of researchers in Tel-Aviv, Israel, continuing a trend of Microsoft tapping talent from Israel.

“Our vision is to deliver a new generation of security capabilities that help our customers protect, detect and respond to the constantly evolving and ever-changing cyber threat landscape,” said Microsoft Windows and Devices Group executive vice-president Terry Myerson. “Hexadite’s technology and talent will augment our existing capabilities and enable our ability to add new tools and services to Microsoft’s robust enterprise security offerings.” He added.

Microsoft said Hexadite will be “fully absorbed into Microsoft,” joining its Windows and Devices Group. The deal was first reported on May 24 by Israeli publication Calcalist, but Microsoft didn’t confirm the acquisition until recently. No terms were disclosed in the news release, but Calcalist previously reported the price was $100 million.

Hexadite was founded in 2014 by Eran Barak, Barak Klinghofer and Idan Levin, veterans of IDF intelligence units who previously worked for the defense electronics firm Elbit Systems. The company’s work is particularly interesting as it has the added advantage of differentiating between low-level attacks and ones requiring more human intervention. For the former, Hexadite’s software can weed out and stop the smaller problems in order to help cybersecurity teams from being overwhelmed.

“For our small team to go from idea to product, bring it to market, and then acquisition by one of the biggest and most respected companies on earth in 3 years is truly an amazing accomplishment,” Hexadite VP Marketing Nathan Burke blogged on the day of the announcement.