• Wed. Nov 29th, 2023

American Investment Company Acquires Israeli Security Firm for $570 Million

Apr 8, 2022

In recent news, Tufin, a cybersecurity company based in the State of Israel, revealed that it is soon going to be bought by Turn/River Capital, an investment firm based in the US. According to the announcement, the Israeli company has been valued at a figure of $570 million. Tufin went on to state that it had entered into a definitive agreement with the investment firm to be purchased. It further added that the software-focused company will be acquiring it through an all-cash transaction. In the year 2019, Tufin made its first public offering in the states. It began trading on the New York Stock Exchange as TUFN. As per the agreement, the cybersecurity company will turn into a private firm and join hands with Turn/River. 

As of now, the agreement is waiting for regulatory and shareholder approval. However, it is expected to close the deal in the next couple of months. For the purpose of this deal, JP Morgan has been hired to be the exclusive financial adviser for Tufin. The shareholders of the Israeli company are all set to receive $13 for every share, which is 44% over the share price recorded a day before the announcement of the deal. At the time, the market capitalization of Tufin was standing at $324 million. The CEO of Tufin, Ruvi Kitov, further added that the team of experts working at Turn/River has experience when it comes to helping software companies, such as Tufin. He added that when it turns into a private company, Tufin will have the chance to accelerate its growth by way of investing in people, go-to-market, and technology. 

Kitov further lauded the expertise and partnership with the American firm, saying that he is confident that the agreement will allow Tufin to achieve his long-term goals at a faster pace. The Israeli software firm was founded in the year 2005 and currently has offices located in Boston, as well as Tel Aviv. Currently, Tufin is a network security corporation, which focuses on automating and streamlining cybersecurity for several complex systems. It provides its services to no less than 2,000 customers, which include IBM, Deutsche Bank, and AT&T. Meanwhile, Turn/River has established itself as a software-focused investment firm, which is based in the city of San Francisco. It provides capital, as well as other sources, to various growing firms. This includes aid with customer services, hiring, and marketing. 

In other news, another major investment firm from the US, General Atlantic, has announced that it will be opening up a new office, situated in the city of Tel Aviv. It added how it has made this decision after investing a significant amount of funds in numerous Israeli firms in the last couple of years. According to the firm, this new office will be instrumental in helping it expand operations in the Middle East, while tapping into the Israeli entrepreneurial ecosystem. General Atlantic has made investments of more than $750 million in no less than eight high-growth companies based in the Jewish state since the year 2019. As of now, it is looking to allocate funds to other companies where it sees a significant opportunity for additional growth. 

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