ZICHRON YAACOV, Israel Microsoft plans to acquire Israeli security software company Whale Communications for $75 million. Details of the deal were not disclosed.
Whale was cofounded in 1998 and has raised $33 million in venture capital from BRM Capital, Goldman Sachs and the Soros Private Equity Partners. It provides secure virtual private network services using SSL encryption.
Microsoft has so far acquired only a few Israeli companies. In 2001, Maximal Innovative Intelligence was acquired for $20 million. In 2000, Microsoft bought Peach Networks for $72 million. Peach was merged with the Microsoft TV division, which closed in 2002.
Whale was acquired in part to help Microsoft establish a new R&D center here as part of a strategy to strengthen its Israeli R&D arm.
Meanwhile, Cisco Systems has made a strategic investment in Guardium, which makes network-based technology to protect sensitive information stored in critical systems.
Cisco’s investment was part of a series C round of funding totaling $6.3 million. It was led by Israeli funds, Cedar Fund and Ascent Venture Partners