Radware has launched a strategic initiative to accelerate the growth of its Cloud Security Services business. As part of this initiative, Radware will acquire SecurityDAM, the operator of its DDoS scrubbing centers. In addition, Radware is planning to expand its innovation center in India as well as the further expansion of its cloud network and its cloud services business unit. The company will invest in technological expansion, operation and additional employees.
Digital transformation opens up new opportunities for companies, but also makes them vulnerable and vulnerable to more cyber attacks. The demand for cloud security solutions is increasing as companies try to fill these defense gaps and protect their assets. “We are committed to providing our customers with state-of-the-art, frictionless security so that they can drive their digital strategies while ensuring that their defenses do not hinder change,” comments Roy Zisapel, President and CEO of Radware . “Radware already protects a quarter of Fortune 50 companies. The goal of our initiative is to innovate and scale faster so that we can make our cloud security features available to even more customers and benefit from the growing market opportunities.”
The new Radware initiative includes:
Acquisition of the assets of SecurityDAM, an affiliated company and operator of a cloud DDoS network. SecurityDAM has provided Radware with scrubbing center services that are used for the provision of Radware’s Cloud DDoS Protection Service.
Expansion of the presence in Bangalore and Chennai, Indiato create a larger regional innovation center. This center is designed to advance research and development (R&D) in the field of cybersecurity and optimize service delivery for the entire portfolio of the company’s cloud security solutions. It complements Radware’s Tel Aviv-based R&D center, which focuses on product innovations such as advanced machine learning algorithms for automatic policy optimization and false alarm detection. With these investments, Radware’s cloud service unit now has a total of almost 300 engineers.
Increasing the cloud service capacity of the global delivery network to 10 Tbps and the expansion of the company’s presence to meet the increasing business needs and the growing volume of cyber attacks. Over the past three months, Radware has opened cloud centers in Paris, Amsterdam and Moscow. Over the next six months, the company plans to open new and expand existing cloud security centers in major cities in the United States (San Jose, California, Dallas, Texas, and Ashburn, Virginia), as well as in Melbourne and Sydney, Santiago de Chile, Hong Kong, Tokyo, Wellington, Taipei and Dubai.
Innovations in the architecture of Radware’s cloud data centers, which allows a separation between zones for peacetime, constantly active zones and mitigation and attack zones. This advanced architecture provides permanent attack detection for all customers and isolates high-traffic companies in certain zones of the cloud network, so that these attacks do not affect the majority of customers. This ensures greater reliability and service availability for always-on customers.
Improvement of service availability and level of protection through new cloud service extensions, including:
- A new portal for Radware’s Cloud DDoS Protection Service to improve the customer experience.
- Improved DNS attack detection and prevention with new algorithms to further improve detection and minimize false positives in advanced DNS attacks.
- An integrated global content delivery network service that has hundreds of cloud centers around the world and is based on AWS CloudFront.
Acquisition of SecurityDAM
Under the terms of the purchase agreement, Radware acquired SecurityDAM’s technology and operations for $30 million (subject to certain adjustments) with conditional payments of up to $12.5 million. The Company anticipates that the acquisition will have a positive impact on profit in 2023 on a non-GAAP basis.
Since Yehuda Zisapel, Chairman of the Board of Radware, and Roy Zisapel, President and CEO of Radware and a member of the Board, held a majority and a minority stake in SecurityDAM, respectively, the takeover was negotiated by a special committee without their participation and unanimously decided. Stifel, Nicolaus & Company, Incorporated acts as financial advisor, and Gross & Co. acts as legal advisor to the Special Committee. Goldfarb Seligman & Co. acts as legal advisor for Radware.