The competition for AI technology and talent is heating up, and Israel has seen a big deal. Cato Networks, the cybersecurity unicorn founded by Shlomo Kramer, is acquiring Aim Security, a young startup, for about $300–350 million in cash and shares.
This is a quick and successful exit for Aim Security, which was founded just two and a half years ago, has about 30 employees, and has raised $28 million so far.
The main winners from the sale are founders Matan Getz (CEO) and Adir Gruss (CTO), along with the investors who backed Aim Security in its two funding rounds. These include Canaan Partners (US), Yoav Leitersdorf’s YL fund (focused on cyber), and the CCL Fund (Cyber Club London).
Several top cyber industry leaders also invested in the company, including some Wiz founders and executives from Google and Palo Alto Networks.
Aim Security was founded by Matan Getz and Adir Gruss, who previously worked on combining AI and cybersecurity during their service in the IDF’s Unit 8200.
As more companies adopt AI, it creates both opportunities and challenges. While AI can improve efficiency, CISOs must also ensure compliance with security and regulatory requirements. Aim’s platform helps employees use AI tools—like Cursor—safely, so organizations can benefit from AI without taking unnecessary risks.
The Aim deal is the fifth acquisition in the fast-growing field of AI-powered cybersecurity and follows a trend that started last year. Most of these deals involve young Israeli startups founded since 2023 that raised only small amounts but delivered quick returns for investors.
Just a month ago, Prompt Security was sold to SentinelOne (also Israeli-founded) for about $250 million. In the past six months, Palo Alto bought U.S.-based Protect AI for $700 million, and Tenable acquired Israeli Apex for $100 million. A year ago, Robust, a company founded by Israelis in the U.S., was purchased by Cisco for $500 million.
Other Israeli startups like Lasso Security and Pillar are still on the market. Meanwhile, Noma, which raised $100 million last month, plans to keep operating independently.
Industry sources say major cyber companies—including Check Point, F5, Akamai, and Cyera—are likely to make acquisitions in this space. In fact, both Akamai and Check Point tried to buy Aim, but Cato won with a higher offer.
AI is changing cybersecurity in every way. Hackers are using AI to create harmful prompts, while employees risk exposing sensitive data when using tools like ChatGPT. At the same time, AI is helping companies build faster and more innovative security solutions.
In 2024, revenues from AI-powered cybersecurity reached $24 billion, mostly going to big companies. Experts predict this market will grow by 25% each year, hitting $100 billion by 2030. For buyers, acquiring young startups offers not just new technology but also skilled AI teams—similar to Silicon Valley’s race to secure top AI talent.
For Cato Networks, this is its first acquisition and a major financial move. The company raised $359 million in June at a $4.8 billion valuation, then added another $50 million from Acrew Capital, bringing its total fundraising to $409 million—enough to fund the Aim deal. Cato also reported that its annual revenue has grown to over $300 million, up from $250 million earlier this year, a 46% increase.
Cato was founded in 2015 by Shlomo Kramer (who also co-founded Check Point and Imperva) and Gur Schatz. The company now has 1,400 employees, half of them in Israel, and has raised $1.1 billion so far. Cato plans to go public on Nasdaq, but current market conditions mean it must show revenues above $300 million, strong growth, and profitability to attract investors. A pioneer in the SASE market, Cato offers cloud-based remote connection solutions designed for the hybrid work era.
“AI transformation will eclipse digital transformation as the main force that will shape enterprises over the next decade,” said Shlomo Kramer, CEO and co-founder of Cato Networks. “With the acquisition of Aim Security, we’re turbo-charging our SASE platform with advanced AI security capabilities to secure our customers’ journey into the new and exciting AI era.”
Read more- Utila Raises $22M in Series A Expansion, Triples Valuation in 6 Months
