Cisco reportedly in talks to buy Israeli cybersecurity firm for $2b

Cisco is in advanced discussions to acquire Axonius, an Israeli cybersecurity company, for US$2 billion, according to a report by Calcalist.

Axonius, founded in 2017 in New York by former members of Israeli cyber units, offers a platform for organizations to manage and secure connected devices.

The company has raised about US$700 million from investors such as Accel, Silver Lake, Bessemer Venture Partners, Iconiq Capital, and Alkeon Capital.

Axonius was previously valued at US$2.6 billion and last year acquired Cynerio, a cybersecurity firm focused on medical devices, for US$180 million.

Axonius denied being in acquisition talks with Cisco, saying it aims to remain independent.

🔗 Source: Calcalist

🧠 Food for thought

Implications, context, and why it matters.

Axonius’s reported US$2B price looks low next to Armis’s US$7.8B sale, but metrics are missing

Rumored US$2B price sits 23% below Axonius’s March 2024 US$2.6B valuation 1. Armis, a direct competitor in agentless security (tools that inventory and secure devices without installing software on them), sold for US$7.8B after a prior US$4.2B mark 2.
Lack of current Annual Recurring Revenue (ARR) growth or profit data beyond being on track for over US$100M in ARR in early 2024 1 makes it hard to tell if the price is distressed or fair.
November layoffs cut more than 10% of staff 3, and a flat 2024 extension round valuation (an add-on to a prior funding round) 1 suggests business strain that likely pushed the price down. CEO Dean Sysman called the unchanged mark an intentional long-term move 1.

Security vendors can move on integration gaps amid reported Cisco-Axonius talks

Axonius runs on more than 1,100 adapter-based integrations (prebuilt connectors) with services like Amazon Web Services (AWS) and CrowdStrike (an endpoint security provider) 2. That opens co-sell (joint sales) chances for Software as a Service (SaaS) and security firms before Cisco products overlap.
Rivals include JupiterOne (cyber asset attack surface management), Tanium (endpoint management plus security) and Qualys (cloud security plus compliance) 2. They should speed asset management upgrades to win deals while buyers wait.
For information technology (IT) service management and identity governance providers, Axonius’s Application Programming Interface (API) 4 offers a template for integrations in the US$245.6B cybersecurity market growing 12.9% a year 2. The platform automates identity lifecycle joiner-mover-leaver steps 2. That includes provisioning access for new hires, updating it when roles change, and revoking it when employees depart.