US private equity firm Spire Capital has acquired Israeli web intelligence company Cobwebs. No financial details were disclosed but sources close to the deal believe that Spire Capital, which specializes in buying security companies, is paying $200-250 million for Herzliya-based Cobwebs. This is an excellent exit for the company’s three founders and 170 employees as it has hardly raised any external funds – just $12 million – thus they are still holding most of the startup’s shares.
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Cobwebs has developed an AI-powered Open-Source Intelligence (OSINT) platform to protect global communities and organizations from crime, threats, and cyber-attacks, by providing seamless access to publicly available data.
Cobweb’s founders Udi Levy (CEO), Shay Attias (CTO) and Omri Timianker (President), all graduates of IDF intelligence units, will earn an estimated $40-50 million each from the sale. Investors Ibex from Israel and Titan Ventures will earn together an estimated $50-60 million from the sale, having only invested several million dollars in Cobweb’s financing round in 2019, according to PitchBook. The two funds bought a 12% stake in that round and increased their holding over time.
Sources close to the deal told “Globes” that the founders received several offers to sell their shares for investment or raise loans over the past two years but declined, thus keeping their own stakes and enjoying the fruits of the exit now. There was good reason for their refusal. Cobwebs is a profitable company for at least the past year, as far as is known with estimated annual revenue of $30-40 million.
Published by Globes, Israel business news – en.globes.co.il – on July 11, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.
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