Singapore investor Temasek to acquire Israeli cybersecurity firm Sygnia

  • Israeli cybersecurity company Sygnia said Tuesday that it will be acquired by Singapore investment firm Temasek Holdings, subject to customary signing and closing conditions.
  • The start-up said that it will maintain its operational independence while collaborating with Temasek and its portfolio companies.
  • Financial details about the acquisition were not disclosed. Temasek declined to comment on the size of the deal. A source familiar with the matter told CNBC that Sygnia will be acquired for $250 million.

Israeli cybersecurity company Sygnia said Tuesday that it will be acquired by Singapore investment firm Temasek Holdings, subject to customary signing and closing conditions.

The start-up said that it will maintain its operational independence while collaborating with Temasek and its portfolio companies. Founder and CEO Shachar Levy will remain at the helm of the company.

"Aligning with Temasek will strengthen our capability to provide end to end strategic support to organizations in meeting the specter of cyber threats, and allow us to accelerate building our global reach," Levy said in a statement.

Financial details about the acquisition were not disclosed. Temasek — a Singapore state investment firm with a portfolio worth billions of dollars — declined to comment on the size of the deal. A source familiar with the matter told CNBC that Sygnia will be acquired for $250 million

Sygnia says its services help clients build cyber resilience against growing security threats. For example, the start-up implements a service that simulates massive cyberattack scenarios to stress test networks and critical assets for companies. That allows decision makers to understand how such attacks occur in real time, to identify vulnerabilities within the company and to strengthen their security.

"Cyber, in its current magnitude, is a new domain of technology, a new domain of warfare, and a new domain of business," Levy said. "Companies are today confronted with a level of risk which until lately was the realm of militaries and states."

He said the company offers "military grade security."

The company declined to disclose names of its clients but said it works with "top organizations worldwide, including Fortune 100 companies" in industries including finance, law, retail and information technology.

There are no current plans to move the headquarters from Tel Aviv, according to the start-up, which added that it expects to have a presence in Singapore.

Sygnia was launched by Team8, which is part-think tank, part-incubator and part-venture creation foundry that develops cybersecurity start-ups from the ground up and is backed by some big names in the tech and financial services sectors — including Temasek.

Team8 Co-founder Nadav Zafrir will remain as chairman at Sygnia.

In June, Temasek invested in cybersecurity company Claroty, which makes software to defend factories and industrial plants from cyberattacks.

— Reuters contributed to this report.