PayPal on Tuesday confirmed reports that it would open a research and development center in Israel and that it had bought the Israeli cybersecurity startup CyActive.
“We’ve made the strategic decision to expand our security efforts by establishing a security center in Israel. Located in one of the world’s top cybersecurity hubs, this new security center will allow us to tap into the country’s cutting-edge technology and top cybersecurity talent,” James Barrese, chief technology officer for PayPal, said in a blog.
“To help jumpstart our security center, I’m also thrilled to announce that we’ve acquired CyActive, a cybersecurity firm that specializes in technology that can predict how malware will develop,” he said.
PayPal, a unit of Ebay, didn’t say what it paid for CyActive, but sources estimated it was about $60 million. CyActive was formed two years ago and raised just $2 million in capital, most of it from the venture capital fund JVP.