Datadog nears $1B acquisition of Israeli Upwind Security

Datadog, a U.S.-based monitoring and analytics company valued at over $50 billion, is in advanced talks to acquire Israeli cybersecurity firm Upwind Security for approximately $1 billion. Upwind, founded in late 2022 by experienced entrepreneurs behind Spot.io, has rapidly raised $180 million to develop a Cloud-Native Application Protection Platform (CNAPP) that secures cloud applications in real time by identifying and preventing threats during operation. The acquisition would significantly bolster Datadog’s security offerings, helping it capture more of the security market budget and marking its largest Israeli deal to date. Upwind’s platform consolidates multiple security functions into one solution, addressing a growing demand for dynamic cloud security in micro-services and container environments. The deal is expected to be structured with both cash and shares and reflects Upwind’s sharp valuation rise following a $100 million Series A round in late 2023. This move aligns with Datadog’s strategy of expanding its capabilities through strategic acquisitions in the cybersecurity sector.