Home / Companies / Microsoft said to have acquired security vendor Adallom for $250 million

Seattle: Microsoft Corp acquired Israeli security software maker Adallom for $250 million to add products to protect its cloud and Office programs, said a person familiar with the agreement.

The Redmond, Washington-based software giant announced the deal in a blog posting on Tuesday. The person asked not to be named because the acquisition price wasn’t disclosed. The Wall Street Journal reported in July that the purchase price would be about $320 million.

Microsoft is trying to boost its cloud and productivity offerings and wants Adallom’s programs to buttress existing security software included in products such as Office 365 and the Enterprise Mobility Suite. Adallom, founded in 2012, works with products from Salesforce.com, Box Inc. and Dropbox Inc., among others. Adallom’s headquarters are in Palo Alto, California, with its research and development operations based in Tel Aviv.

Adallom is the third Israeli company to be acquired in the past year by Microsoft, which purchased text-analysis startup Equivio in January and enterprise security firm Aorato Ltd in November 2014.

Adallom’s three founders are veterans of the Israeli Army’s elite Unit 8200 intelligence corps, a group likened to the US National Security Agency that has become a breeding ground for the country’s technology startups. The company’s name is an abbreviation of the Hebrew phrase “ad halom," which translates to “up to here" and means “the last line of defense" in game theory, the company said on its website. Adallom’s founders will join Microsoft as part of the deal, the companies said. Bloomberg

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