Cybersecurity unicorn Axonius is acquiring Cynerio, a healthcare IoT cybersecurity and asset management startup, in an all-Israeli deal worth $180 million. Calcalist has learned that the total value of the acquisition could grow to $250 million, contingent on Cynerio achieving specific milestones.
Founded in 2018 by CEO Leon Lerman and CTO Daniel Brodie, both veterans of the IDF’s elite Unit 8200, Cynerio builds firewalls designed to protect medical devices from cyberattacks. To date, the company has raised around $50 million across two funding rounds, the latest of which was completed in 2021. Investors include ALIVE Israel HealthTech Fund, Accelmed, RDC, Elron’s joint venture with Rafael, and Swiss-based growth investor, MTIP.
Cynerio employs approximately 70 people across Israel, the U.S., and Europe. Most of the team is expected to be absorbed into Axonius, which plans to leverage the acquisition to expand its product suite into healthcare and critical infrastructure sectors. The move is projected to increase Axonius’ annual recurring revenue (ARR) by tens of millions of dollars within the first year post-acquisition.
Axonius was founded in 2017 in New York by Dean Sysman, Ofri Shur, and Avidor Bartov, all also IDF cyber unit alumni. The company offers a platform for managing and securing all devices connected to corporate networks. Its technology provides organizations with a comprehensive asset inventory, identifies gaps in existing security coverage, and automates the enforcement of security policies.
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Since its founding, Axonius has raised around $595 million across six funding rounds. Its most recent valuation was estimated at $2.6 billion in a round led by Accelmed and joined by Silver Lake. In 2023, the company surpassed $100 million in ARR, and its customers include major players such as News Corp., Schneider Electric, and American defense contractors.
Cynerio agreed to the acquisition to help scale its unique medical device security solution into broader areas such as the Internet of Things (IoT) and cyber-physical systems (CPS). By integrating into Axonius’ platform, the company expects to accelerate its global reach.
A veteran cybersecurity entrepreneur told Calcalist: “Axonius and Claroty have worked together for years, and there was significant speculation about a possible merger. This deal with Cynerio shifts that narrative. It puts Axonius in direct competition with Claroty, especially given the expansion of Axonius’ offerings into critical infrastructure with more modern technology.”
