Microsoft confirms $320 million purchase of Israeli cloud security firm

Microsoft has confirmed its biggest Israeli investment ever with the acquisition of cloud security company Adallom for $320 million (£205 million).

Analysts have suggested that Adallom - founded in 2012 by entrepreneurs Assaf Rappaport, Ami Luttwak and Roy Reznik - will serve as Microsoft's cyber center in Israel.

The move marks Microsoft's second security acquisition in the last 12 months, following on from its $200 million (£130 million) purchase of cyber security firm Aorato at the end of 2014. Its recent spending spree also includes calendar app Sunrise for around $100 million (£65 million) and productivity app Winderlist for around $200 million (£130 million).

Adallom specialises in the Software as a Service (Saas) area of cloud security by providing users with information security technology on remote servers and can secure information stored on cloud services from the likes of Salesforce, Microsoft and Google.

The software detects any suspicious activity, such as an employee downloading a inordinate quantity of documents or a lack of data overlap and creates a layer of prevention against suspected users.

The company has raised around $50 million (£32 million) from various venture capital funds, including Sequoia Capital, Index Ventures, EMC Corporation and HP and currently employs 80 staff in its Israel and US offices.

According to its website, customers include the likes of Netflix, Pixar, SAP and Jive Software.