Schwarz Group acquires Israel’s XM Cyber; Outbrain snaps up Swiss firm

 Schwarz Group acquires Israel’s XM Cyber; Outbrain snaps up Swiss firm

Germany’s Schwarz Group, the world’s fourth-biggest retailer, has acquired Israeli hybrid cloud security company XM Cyber for $700 million to beef up its in-house capabilities to thwart cyberattacks.

Schwartz, which also has a significant presence in the cloud computing space, XM Cyber complements its portfolio of advanced cybersecurity services and supports the group’s digital business models.

“Finding and closing security gaps from an attacker’s perspective is a disruptive approach to the way organizations can proactively protect their networks,” said Christian Müller, chief information officer of Schwarz Group. “XM Cyber’s solution builds on our strong IT security to further protect our customers, partners, and ourselves as a company.”

XM Cyber has developed a technology that simulates cyberattacks on IT systems and helps companies strengthen their defences. It was founded in 2016 by former Mossad chief Tamir Pardo, Noam Erez, and Boaz Gorodiski.

The company has raised $49 million over the last five years. In July, XM Cyber had raised $17 million in a Series B funding round led by Macquarie Capital, Nasdaq Ventures, Our Innovation Fund, and Swarth Group.

Outbrain

Outbrain, an Israeli company that has developed a recommendation platform for open web, is acquiring Switzerland-based contextual video technology company video intelligence AG in a $55 million deal.

Outbrain said it will fund the acquisition with $46.75 million of balance sheet cash and 412,500 of its shares.

The deal, which is set to close by the first quarter of 2022, comes just months after Outbrain listed on the Nasdaq stock exchange in July at a valuation of $1.12 billion.

Since then, however, it has seen its fortunes dwindle and now commands a market capitalization of just around $800 million.

David Kostman, co-CEO of Outbrain, said the Swiss firm “fits perfectly” into the company’s core strategy of providing media owners with technology to enhance user engagement and monetization through relevant content and ads.

Yaron Galai, co-founder and co-CEO of Outbrain, said the deal will also expand its addressable market, introducing high-quality in-stream video inventory to support it brand advertisers. “We see significant synergies between our companies and we are very excited to welcome the incredibly talented and experienced vi team to Outbrain,” Galai said.

Aman Malik

The Capital Quest