U.S. cybersecurity company CrowdStrike said it has agreed to acquire the technology, source code and more than 45 patents of Israeli firm XM Cyber, five years after Schwarz Group bought the company for $700 million. XM Cyber will remain a standalone business under a long-term licensing agreement.
KEY FACTS
- Deal scope CrowdStrike is buying only intellectual property, not XM Cyber’s customers or operations.
- Financial terms The companies did not disclose a price for the transaction.
- Business model XM Cyber focuses on attack path management software that maps how attackers could move through networks.
- Ownership history Schwarz Group acquired XM Cyber in 2021 for $700 million.
XM Cyber was founded in 2016 by former Mossad director Tamir Pardo, together with Noam Erez, Boaz Gorodisky and Shaul Shani. The company built tools to simulate cyberattacks and rank the weaknesses most likely to be exploited.
CrowdStrike said the acquisition supports its Falcon Exposure Management business, which focuses on identifying and prioritizing exploitable security gaps across an organization’s attack surface. The company also said artificial intelligence is helping attackers find and combine vulnerabilities faster, which is increasing demand for integrated platforms.
As part of the broader partnership, CrowdStrike and Schwarz Digits plan to bring the Falcon platform to STACKIT, Schwarz Digits’ sovereign cloud service, for European customers that want infrastructure hosted within the European Union. The companies linked the effort to tighter regional rules including the Cyber Resilience Act and NIS2.
XM Cyber will continue serving existing customers and may later give them the option to move to CrowdStrike’s Falcon platform through Falcon Flex. The transaction is expected to close in the second half of CrowdStrike’s fiscal 2027, subject to regulatory approval.
WHY IT MATTERS
The deal shows how large cybersecurity companies are using intellectual property purchases to expand product lines without taking on a full acquisition. It also highlights continued demand for tools that help organizations manage exposure across cloud and network environments as regulation and attack complexity rise.