Claroty raises $400 million to acquire Medigate

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Global industrial cybersecurity firm Claroty, which recently opened its regional headquarters in Singapore, has raised US$400m in a Series E round in order for them to acquire healthcare IoT security company Medigate. 

“By combining Claroty and Medigate’s deep domain expertise and specialised technologies into a single platform, we will take a giant leap forward on our mission to secure the ever-expanding universe of XIoT [Extended Internet of Things] for every connected organisation,” said Yaniv Vardi, CEO of Claroty. 

“We envision a future where cyber and physical worlds safely connect to support our lives, and with such strong backing from some of the world’s foremost technology investors, we have the resources we need to make this vision a reality,” said Vardi.

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This funding round was co-led by new investor SoftBank Vision Fund 2, as well as existing investors Bessemer Venture Partners and Schneider Electric. 

Other existing investors, including ISTARI (a global cybersecurity platform established by Temasek), Team8, and Standard Investments also participated. 

Additionally, Yossi Cohen, head of SoftBank’s investment activities in Israel, will join Claroty’s board of directors.

“As digital transformation initiatives drive the essential physical systems that we rely on for even the most basic human needs, securing these systems is ultimately about mitigating risks to human life,” said Cohen. 

“Claroty’s technology addresses a high-stakes problem in enabling safe digital transformation, and we are eager to partner with the team in its journey to protect the critical infrastructure that is the foundation of the AI revolution,” added Cohen. 

Securing cyber-physical systems is a particularly acute challenge in the healthcare sector due to the proliferation of IoT and IoMT devices connecting to hospital networks, with  82% of health systems reported experiencing an IoT cyberattack in the last 18 months. 

Beyond critical infrastructure, organisations of all kinds are increasingly reliant on CPS to run their building management systems, surveillance cameras, heating, ventilation, and air conditioning systems, and many other physical processes. 

“Becoming a part of Claroty means our customers will not only continue to receive the best security for their healthcare IoT devices, but will also gain coverage for the wide array of industrial IoT assets in their networks, without having to stitch together disparate tools for each,” said Jonathan Langer, co-founder and CEO of Medigate.