Microsoft, on Monday, confirmed that it is going to acquire the cybersecurity company, RiskIQ, for undisclosed terms. This is a leap by Microsoft to expand its products and better protect customers amid a rising tide of global cyberattacks.
The deal was announced on Monday on the company’s website with the terms being undisclosed. Bloomberg reported the purchase, citing people familiar with the matter. Microsoft will be paying a sum of $500 million in cash, confirmed one of the people familiar with the subject. The name of the person was, however, remains undisclosed.
The deal could help Microsoft expand its security business, which is growing faster than other segments. In January, Microsoft said it derived more than $10 billion in security revenue in the past 12 months, up more than 40% year over year.
RiskIQ’s Illuminate software helps companies to assess the threats across the company’s information technology footprint so security professionals can address the most critical ones. RiskIQ makes cloud software for detecting security threats, helping clients understand where and how they can be attacked on complex webs of corporate networks and devices. The system works across Microsoft’s Azure cloud and other clouds such as market-leading Amazon Web Services. Its customers include Facebook Inc., BMW AG, American Express Co., and the U.S. Postal Service, according to the company’s website.
Microsoft has had to contend with security issues recently, including exploits of versions of its Exchange Server email and calendar software. Microsoft and the remainder of the U.S. tech industry, just as organizations and government offices, have additionally gone through the previous eight months wrestling with a progression of harmful and inescapable cyberattacks.
