IBM announced its acquisition of Israeli startup Trusteer on Thursday morning, in a deal estimated to be worth $800 million.
The Israeli data security software company is IBM's 13th Israeli acquisition and currently has an estimated $100 million in yearly revenues. Following the acquisition, IBM plans to create a lab in Israel where former Trusteer employees will work alongside current IBM researchers and software developers on data security solutions for apps and mobile platforms, as well programs to tackle malware and computer-based financial fraud.
Trusteer was co-founded by CEO Mickey Boodaei, President Rakesh Loonkar, CTO Amit Klein, VP Research and Innovation Shmulik Regev and VP R&D Eldad Ben-Haim, and received early backing from investor and board member Shlomo Kramer. Kramer is a prominent figure in Israel's data security community known for being one of the founders for local software giant Check Point Software Technologies. The company has more than 200 employees today, most of them in Israel. The company's headquarters are located in Boston. Trusteer is one of many data security companies in Boston, including the Israeli startups Cyber-Ark, BioCatch and CloudLock.
IBM's Israel operations are spread out across 14 locations, comprising the largest R&D center outside the United States, with close to 1,100 employees before the Trusteer acquisition. The company's last acquisition in Israel was the software company CSL International for financial terms that were not disclosed but believed to be between $10 million and $20 million. IBM's largest previous acquisition in Israel was that of software startup Worklight in the beginning of 2012. The terms of that deal were also not publicly disclosed, but the deal was believed by industry sources to have been worth $95 million. Worklight was founded by Shahar Kaminitz, who previously served as an executive at local software heavyweight Amdocs.