Temasek On an Investment Spree In Cybersecurity
With the increasing number of data breaches happening every year, cyber-attacks have become a common sight. As a result, more and more cybersecurity companies are catching investors ‘fancy. Singapore investment firm Temasek Holdings is the latest one to follow the trend.
The global investment company recently acquired Sygnia, an Israeli cyber technology company providing high-end consulting and incident response support for organizations worldwide.
Expanding Global Reach
Sygnia will maintain its operational independence while pursuing collaborations with Temasek and its portfolio companies. With the acquisition, Sygnia will grow its resources and expand its global reach as it continues building its capabilities as a world-class provider of cyber consulting and incident response services.
Founded by Shachar Levy in 2015, the cybersecurity startup works with companies worldwide to proactively build their cyber resilience and defeat attacks within their networks. Since its inception, Sygnia has managed numerous heavyweight cyberattacks and has become the trusted advisor of executive management, boards, and technology teams of top organizations worldwide, including Fortune 100 companies.
Provide Cybersecurity Support
Post-acquisition, Levy will continue to lead the company whereas both co-founders Ariel Smoler and Ami Kor will remain in key positions at the company.
"Aligning with Temasek will strengthen our capability to provide end to end strategic support to organizations in meeting the spectre of cyber threats, and allow us to accelerate building our global reach," said Levy.
Sygnia was launched by Team8, a cybersecurity powerhouse and company creation platform that was founded by former leadership from Israel's Cyber and Intelligence Unit, 8200 (Israel’s equivalent of the NSA, GCHQ).
Nadav Zafrir, Chairman of Sygnia and CEO of Team8 said that Team8 will remain committed to Sygnia's success and will continue to collaborate and work closely together. Zafrir will maintain his role as Chairman after Temasek’s acquisition.
"Sygnia has built a powerful combination of professional proficiency, methodologies, technologies, and a culture of excellence, which is critically needed in confronting the growing complexity of cyber," he added.
According to advisory firm Gartner, worldwide spending on information security is expected to reach $90 billion in 2017, an increase of 7.6 per cent over 2016, and to top $113 billion by 2020. Undoubtedly, it is one of the hottest tech sectors for investment right now.
This is not the first time when Temasek has shown interest in the cybersecurity sector. In June, the investment firm pumped $60 million in New York-headquartered cybersecurity startup Claroty. Post that it also inked a deal with Singapore-based telecom operator StarHub to set up Ensign InfoSecurity, a pure-play cybersecurity firm that helps customers identify and manage risks in their networks through the stringent IT Security Audit Methodology.