The Schwarz Group, an EU-based retail company, has acquired an Israeli security startup for $700 million. It may seem like a strange partnership, but the company believes that security will benefit its retail business.
Customers are helped by XM to see what an attack would look like to expose flaws and openings in a company's security posture with the goal of shutting down vulnerabilities before an actual cyber attack happens.
Christian Mller says that adding a security piece to the portfolio is essential as more shopping moves online. Finding and closing security gaps from an attacker's perspective is a disruptive approach to the way organizations can protect their networks. Mller said in a statement that the solution builds on the IT security of the company.
Noam Erez, the CEO and co-founder of XM Cyber, sees the advantages of being part of a large corporation even if it doesn't have a technology focus. With the financial backing of Schwarz, we will be able to accelerate product innovation, scale and extend our global reach. The ability to secure suppliers, consumers and businesses is a key enabler in delivering on the promise of digital transformation, according to Erez.
All of the XM employees will keep their jobs, meaning that existing customers will likely see little change in how things operate under the terms of the deal.
If the parent company doesn't make any significant changes behind the scenes, they may get the advantage of being part of the larger company. Time will tell on that.
According to data from Crunchbase, XM Cyber raised $49 million. The most recent deal was in July.
