Cisco in advanced talks to acquire cyber startup Axonius for $2 billion

Exclusive: The deal would follow a string of major acquisitions as Cisco strengthens its enterprise security portfolio.

Technology giant Cisco is in advanced negotiations to acquire Israeli cybersecurity company Axonius for $2 billion, Calcalist has learned. Axonius was previously valued at $2.6 billion. The company operates in a space similar to Armis, which was sold for $7.75 billion last month.

Axonius has raised approximately $700 million to date, with investors including Accel, Silver Lake, Bessemer Venture Partners, Iconiq Capital and Alkeon Capital. The company’s first investor, YL Ventures, has since exited its holdings. Last November, Axonius laid off around 100 of its 900 employees across Israel and the United States. The company acquired Cynerio, an Israeli cybersecurity firm specializing in medical devices for hospitals, in a $180 million deal in July of last year.

Axonius said in response: “Axonius is not in talks to be acquired by Cisco. Our strategy is to build a durable, independent company. We are focused on execution, serving our customers, and continuing our growth. That is where our attention is.”

Axonius, founded in 2017 in New York by Dean Sysman, Ofri Shur, and Avidor Bartov, all alumni of the IDF’s elite cyber units, offers a comprehensive platform for managing and securing devices connected to corporate networks. It provides organizations with a centralized asset catalog, identifies gaps in existing security coverage, and automatically enforces security policies. The platform integrates with more than 300 security and management solutions, can be deployed within minutes, and is designed to improve security coverage immediately.

The problem Axonius addresses is the “blindness” many large organizations face regarding their digital assets. In an environment where every employee may have a computer, a phone, multiple cloud applications (SaaS), and numerous user accounts, it is challenging to know what is connected to the network and whether it is secure. Axonius connects to existing organizational tools, including antivirus software, cloud systems, and user management platforms, and correlates the data to create a “single source of truth.” It automatically detects devices or applications that lack security or fail to comply with company policies, and can take automated remediation actions, such as blocking unauthorized users or installing missing updates.