Microsoft Said to Be in Talks to Snap Up Israeli Startup Aorato

The computing giant is reportedly mulling a $200 million deal for the cybersecurity startup.

A shadow of a man using his mobile phone is cast near Microsoft logo at the 2014 Computex exhibition in Taipei in this June 4, 2014 file photo.Reuters

Computing giant Microsoft is in talks to purchase Israeli cybersecurity startup Aorato for an estimated $200 million, the Wall Street Journal reported Tuesday.

A source familiar with the talks said the deal would close within two months, but neither company have yet confirmed the report.

Aorato was set up in 2011 by former Israel Defense Forces soldiers who served in technology units. The company's software monitors whether unauthorized activity is taking place within IT systems. By building a profile of authorized users in a firm's IT system, Aorato's software can pinpoint attempts by unauthorized users to access a system. It can also detect unauthorized activity of staff.

The startup recently raised some $10 million dollars. Its investors include Accel Partners and Innovation Endeavors and venture capital fund Glilot Capital Partners.