Claroty nets $400m funding, to acquire Medigate

Global industrial cybersecurity company Claroty announced that it has raised $400 million in Series E funding and has agreed to acquire Medigate, a leading healthcare IoT security company, as part of its mission to secure all cyber-physical systems (CPS) across industrial, healthcare, and enterprise environments – the Extended Internet of Things (XIoT).

The company now has $635 million in total funding, making it the most well-funded cybersecurity firm in the industrial (OT), healthcare (IoMT), and enterprise IoT sectors.

“While connectivity between the cyber and physical systems in manufacturing, healthcare, energy, and other industries is driving significant competitive advantages via increased operational agility and resilience, it also creates greater exposure to risks with serious consequences for patient safety, public safety, and the environment,” said Yaniv Vardi, CEO of Claroty.

SoftBank Vision Fund 2, as well as current investors Bessemer Venture Partners and Schneider Electric, led the Series E fundraising round.

Other existing investors, including as Temasek’s ISTARI (a worldwide cybersecurity platform), Team8, and Standard Investments, also took part. Yossi Cohen, the leader of SoftBank’s Israeli investment initiatives, will also join Claroty’s board of directors.

Vardi added that they will take a major step forward in their ambition to protect the ever-expanding universe of XIoT for every connected company by integrating Claroty and Medigate’s deep domain expertise and specialized technology into a single platform.

Yossi Cohen of SoftBank Investment Advisers, says Claroty’s solution solves a high-stakes problem in allowing safe digital transformation and they are excited to join the team on their mission to safeguard the essential infrastructure that underpins the AI revolution.

Because of the growth of IoT and IoMT devices connecting to hospital networks, securing CPS is a particular concern in the healthcare sector – in fact, 82 percent of health organizations have reported an IoT hack in the last 18 months.

David Cowan, a partner at Bessemer and a member of the Claroty board of directors, said Claroty’s recognition by Forrester as a Leader in industrial control systems (ICS) security confirms their conviction in its capabilities, traction, and leadership.