Cybersecurity company Cyera has acquired Israeli startup Genie Security in a deal estimated at $50 million, according to CTech. The acquisition comes just five months after Genie Security was founded, highlighting the rapid pace of consolidation in the cybersecurity market.
Genie Security developed endpoint-based data protection technology designed to identify and prevent sensitive information leaks in real time, including risks tied to generative AI tools such as Claude and other AI systems. The company had reportedly deployed its commercial product across hundreds of endpoints in organizations in both Israel and the United States despite operating with a team of only five employees.
The acquisition marks another expansion move for Cyera, which was valued at $9 billion in its most recent funding round. Over the past year, the company has been aggressively pursuing acquisitions, including deals for Ryft, Trail Security, Otterize, and Shape AI. These acquisitions have helped Cyera expand its global operations to approximately 1,500 employees across 15 countries.
Genie Security was founded by CEO Nadav Noy and CTO Noam Dotan, both veterans of elite Israeli military technology units. The startup raised $3 million in seed funding from investors including Mensch Capital and Dynamic Loop, with angel participation from cybersecurity executives and investors including Assaf Rappaport of Wiz.
Following the acquisition, Genie Security’s team will join Cyera’s enterprise data loss prevention division. The startup’s endpoint security technology will be integrated into Cyera’s broader data security platform, which the company says is already used by 20% of Fortune 500 companies.
The deal reflects increasing demand for technologies that help enterprises manage AI-related data security risks as employees continue adopting generative AI tools in everyday workflows. Organizations are increasingly seeking ways to monitor how sensitive data moves through AI systems and prevent unintended information leakage.
