Israeli cyber unicorn Cato snaps up Tel Aviv AI security startup

Israeli cyber unicorn Cato Networks on Wednesday announced a deal to buy Tel Aviv-based startup Aim Security, in order to be better equipped to help businesses address the rapidly evolving risks posed by the adoption of artificial intelligence-based applications.

Cato, a maker of cloud-based secured networks for large enterprises that lets workers connect to applications regardless of where they are, did not disclose the value of the acquisition, but it is estimated at around $350 million.

Aim Security is Cato’s first acquisition since it was co-founded in 2015 by Shlomo Kramer, a cybersecurity entrepreneur who previously co-founded Check Point Software Technologies and Imperva. French aerospace and defense electronics group Thales bought Imperva in 2023 in a deal worth $3.6 billion.

Aim Security was founded in 2022 by Matan Getz, CEO, and Adir Gruss, CTO, who are both graduates of the IDF’s elite intelligence outfit Unit 8200, where they worked on AI and cybersecurity-related projects.

The startup has developed an AI security platform designed to help businesses and organizations protect their sensitive data against cyber threats and attacks as they increasingly introduce large language models (LLMs) and other generative AI applications into their private network systems. To date, Aim Security has raised $28 million from investors.

Kramer created Cato with former Imperva colleague Gur Shatz to develop cloud-based secure networks for large enterprises that can be accessed from any location, including via mobile devices. As AI is transforming businesses everywhere.

Its secure access service edge, or SASE platform, provides a single cloud-based network that connects and secures any physical location, cloud resource, or mobile device to any application accessed by users, regardless of where they are signing in from.

“AI transformation will eclipse digital transformation as the main force that will shape enterprises over the next decade,” said Cato CEO Kramer. “With the acquisition of Aim Security, we’re turbo-charging our SASE platform with advanced AI security capabilities to secure our customers’ journey into the new and exciting AI era.”

Cato said that the integration of Aim’s security technology will bolster its platform with capabilities to detect and stop threats, attacks, risky or anomalous access and sensitive data breaches, as businesses rapidly connect to AI applications, models and agents.

Separately, Cato reported that it has secured another $50 million from Acrew Capital at a company valuation of about $4.8 billion. The additional funding is part of a financing round announced back in June, and takes the total raised from the financing round to $409 million.