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Claroty Raises $400 Million, Acquires Healthcare IoT Security Firm Medigate

Industrial cybersecurity firm Claroty on Wednesday announced that it has raised $400 million in a Series E funding round, and revealed that it has entered an agreement to acquire healthcare IoT security company Medigate.

Claroty’s latest funding round, which brings the total raised by the company to $635 million, was co-led by SoftBank Vision Fund 2, Bessemer Venture Partners and Schneider Electric, with participation from ISTARI, Standard Investments, and Team8 — Team8 is an Israeli startup foundry that launched Claroty.

Claroty In the previous funding round, Claroty raised $140 million and there were reports at the time that the company had been valued at more than $1 billion. However, Claroty has refused to comment on its valuation.

It’s worth noting that industrial cybersecurity company Dragos, which in October announced that it had raised a total of $360 million, has been valued at $1.7 billion following a $200 million Series D funding round.

Claroty was founded in 2014 and it emerged from stealth mode in 2016. The company offers solutions designed to help organizations discover, manage, and protect their OT, IoT and IIoT assets. Its products provide visibility, threat detection, secure remote access, and risk and vulnerability management capabilities.

As for the acquisition of Israel-based Medigate, Claroty has paid $400 million for the company -- all of the new funding was used for the acqusition -- and says the plan is to combine their expertise and technologies into a single platform.

Medigate emerged from stealth in 2017 and by September 2020 it raised $50 million. The company has developed a healthcare IoT security platform that provides asset discovery, vulnerability identification and risk assessment, protection, monitoring, and optimization capabilities.

*updated after YL Ventures, an early investor in Medigate, clarified that the $400 million raised by Claroty has been used to acquire Medigate

Related: Microsoft Acquires Industrial Cybersecurity Company CyberX

Related: IoT/OT Device Security Firm NanoLock Raises $11 Million

Related: OPSWAT Acquires Industrial Cybersecurity Firm Bayshore Networks

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Eduard Kovacs (@EduardKovacs) is a contributing editor at SecurityWeek. He worked as a high school IT teacher for two years before starting a career in journalism as Softpedia’s security news reporter. Eduard holds a bachelor’s degree in industrial informatics and a master’s degree in computer techniques applied in electrical engineering.