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Microsoft Acquires Industrial Cybersecurity Company CyberX

Microsoft announced on Monday that it has acquired industrial cybersecurity company CyberX in an effort to expand its Azure IoT security capabilities and extend them to industrial IoT (IIoT) and operational technology (OT) systems.

Financial terms of the deal have not been disclosed, but Israel’s Globes reported in early May that Microsoft had been preparing to buy CyberX for $165 million.

Rumors of the acquisition emerged just weeks after CyberX announced new integrations with Microsoft Azure Security Center for IoT in an effort to provide organizations a unified view across their IoT devices.

Microsoft acquires CyberX

Microsoft now says it’s integrating CyberX technology with the Azure IoT stack, Azure Security Center for IoT, and Azure Sentinel in an effort to “provide a simpler approach to unified security governance across both IT and industrial networks, as well as end-to-end security across managed and unmanaged IoT devices, enabling organizations to quickly detect and respond to advanced threats in converged networks.”

The two main challenges that Microsoft is hoping to address through this acquisition is to give customers visibility into the IoT devices currently connected to their network and manage the security of these devices.

CyberX founders Omer Schneider and Nir Giller will join Microsoft and CyberX’s staff will continue to work on improving the platform, which will still be available after the acquisition for cloud and air-gapped networks.

“By joining forces with Microsoft, we will rapidly scale our business and technology to securely enable digital transformation for many more organizations,” said Giller, who has served as international GM and CTO at CyberX. “Together, CyberX and Microsoft provide an unbeatable solution for gaining visibility and a holistic understanding of risk for all IoT and OT devices in your enterprise.”

Founded in 2013, CyberX has raised $48 million across five funding rounds. The company has developed IoT and OT security solutions that provide asset management, network segmentation, risk and vulnerability management, threat monitoring and detection, SOC integration, and centralized management capabilities.

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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.