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Microsoft Reportedly Acquiring Cloud Security Firm for $320M

Microsoft is reportedly in talks to acquire Tel Aviv-based Adallom, a provider of cloud security solutions, for $320 million.

So far, neither company has confirmed the deal. However, The Wall Street Journal reported on Monday that the the buyout is all but done based on information from two unnamed sources close to the deal.

If the deal goes through, Adallom would be the fourth Israeli tech firm (and third security company) that Microsoft has bought in the last year, and the most expensive of the four.

Founded in 2012, Adallom specializes in monitoring and securing data in custom apps, SaaS and IaaS solutions. The company provides monitoring tools that allow employees to spot and flag possible security breaches in real time, while at the same time alerting users of anomalies in data behavior. In 2013, Adallom disclosed to Microsoft a critical vulnerability that could allow Office 365 tokens to be hijacked.

Adallom's security suite can work in conjunction with popular cloud services, including Salesforce.com, Google Apps, Box, Office 365 and Amazon Web Services (AWS). Among the company's largest customers are Netflix, LinkedIn, HP and Pixar.

Since its founding, Adallom has secured $49.5 million in funding, including $4.5 million in Series-A funding by Sequoia Capitol.

Earlier this week, Adallom announced a partnership with Softbank Commerce and Services, one of Japan's largest communications tech distributors, to bring Adallom's cloud security platform to enterprises in the region.

About the Author

Chris Paoli is the site producer for Redmondmag.com and MCPmag.com.