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Microsoft acquires CyberX to strengthen IoT security offering

Microsoft is acquiring CyberX to boost its IoT security offerings, though it's unknown whether CyberX will remain a separate entity or be integrated into Microsoft.

Microsoft confirmed Monday it is acquiring CyberX, an IoT security startup.

CyberX, based in Waltham, Mass., was founded in 2013 and is known for its software platform that monitors IoT and industrial control system assets and detects threats and vulnerabilities related to those assets. Terms of the deal were not disclosed, though Israeli news outlet Haaretz reported last month that the deal was expected to cost $165 million.

In a blog post announcing the acquisition, Michal Braverman-Blumenstyk, corporate vice president and CTO of Cloud and AI Security at Microsoft, and Sam George, corporate vice president of cloud and AI Azure IoT at Microsoft, said the acquisition is part of the company's previously announced $5 billion investment in IoT technology and services.

"CyberX will complement the existing Azure IoT security capabilities, and extends to existing devices including those used in industrial IoT, operational technology and infrastructure scenarios," Braverman-Blumenstyk and George wrote in the blog post.

The blog post also said the acquisition will help Microsoft solve two challenges:

"1. Giving customers visibility into what IoT devices are already connected to their networks.

  1. Managing the security on existing IoT devices (referred to as "brownfield devices") that have been historically difficult due to a myriad of custom protocols."

Microsoft's blog post did not say whether CyberX was going to be integrated into Microsoft or remain a separate entity as a subsidiary. Microsoft declined to comment on the record.

However, in a press release CyberX said that "CyberX's founders will join Microsoft and the platform will continue to be enhanced and supported by CyberX personnel. In addition, Microsoft is committed to the channel and will continue working with CyberX's strategic reseller and technology partners worldwide. The CyberX platform will continue to be available in a hybrid model supporting both cloud-connected and air-gapped networks."

CyberX did not respond to SearchSecurity's request for comment.

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