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Akamai acquires Israeli AI browser security firm for $205m
Akamai Technologies is acquiring Israeli cybersecurity startup LayerX Security for about US$205 million in cash.
The deal will add browser-layer protection to Akamai’s enterprise security business.
Founded in 2022, LayerX focused on browser controls for AI and web apps, has raised US$45 million from Glilot Capital, Dell Technologies Capital, and Jump Capital.
Its employees, including co-founders Or Eshed and David Weisbrot, will join Akamai’s cybersecurity division after the deal closes.
Akamai said LayerX is expected to reach about US$10 million in annual recurring revenue by year-end, and the deal follows its earlier Israel acquisitions of Guardicore in 2021, NeoSec in 2023, Noname Security in 2024, Cotendo in 2012, and ChameleonX in 2019.
🔗 Source: Calcalist
🧠 Food for thought
Implications, context, and why it matters.
LayerX’s technology covers a blind spot created by AI and software-as-a-service apps
- Firewalls and similar tools often cannot see what happens inside an employee’s browser. That leaves room for risk when staff use unapproved AI tools or harmful browser extensions 1.
- LayerX goes after that gap with a small extension for browsers such as Chrome and Edge 2.
- That setup lets companies keep the browsers employees already use instead of moving them to a separate product, unlike Island, a startup that sells its own enterprise browser 3.
- The software can enforce detailed rules, such as stopping someone from pasting source code into ChatGPT. It can also tell whether an action came from a person or an autonomous AI agent 4.
The deal fits a wider wave of consolidation in enterprise security
- Akamai’s purchase price and LayerX’s expected annual recurring revenue imply a rich valuation for a fast-growing company. Browser protection now carries more weight as work shifts to web apps and AI tools 3.
- The acquisition adds pressure in a market that includes Palo Alto Networks and its own browser security product 4.
- For companies, protection is moving into daily work with real-time controls. One example is removing sensitive data before it is sent to an AI model 1.
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