Israeli cybersecurity firm Cyera has acquired Otterize, a company focused on securing non-human identities in cloud environments. The deal is valued in the tens of millions of dollars.

This is Cyera’s third Israeli acquisition, following Trail Security in October 2024 and Shape AI earlier this month.

The company has invested around US$250 million in Israeli acquisitions to date.

Otterize, founded in 2022 by Tomer Greenwald, Ori Shoshan, and Uri Sarid, offers a solution that combines open-source tools with a SaaS platform to automate Intent-Based Access Control (IBAC).

It raised US$11.5 million in a seed round backed by Index Ventures, Dig Ventures, and Vine Ventures.

Cyera, founded in 2021 by Yotam Segev and Tamar Bar-Ilan, recently completed a US$540 million series E funding round, bringing its total funding to US$1.3 billion and its valuation to US$6 billion.

🔗 Source: Calcalist

🧠 Food for thought

1️⃣ Israeli cybersecurity sector displays robust consolidation despite geopolitical challenges

Cyera’s acquisition of Otterize demonstrates resilience in Israel’s tech ecosystem, which has repeatedly withstood regional conflicts and security challenges.

The deal, made during heightened tensions, reflects how Israeli tech companies continue their business operations even in challenging circumstances, with Bar-Ilan framing it as “a message of national resilience”1.

This acquisition is Cyera’s third Israeli purchase, following Trail Security and Shape AI, representing an estimated $250 million investment in local Israeli acquisitions, showing substantial intra-ecosystem consolidation during crises.

This resilience pattern has historical precedent in Israel’s tech sector, which has maintained growth through multiple regional conflicts, contributing to its reputation as “Startup Nation” with over 6,000 active startups as of 20212.

The cybersecurity subsector, in particular, has thrived despite regional challenges, with military intelligence units like 8200 serving as significant talent pipelines for companies like Cyera, whose founders Yotam Segev and Tamar Bar-Ilan are both Unit 8200 veterans1.

2️⃣ Military-to-civilian talent pipeline continues to drive Israeli tech innovation

Cyera’s founding team exemplifies Israel’s distinctive technology talent development pathway, with both co-founders being graduates of the elite Talpiot program and veterans of Unit 8200, Israel’s equivalent of the NSA.

Recent Cyera developments