Claroty, a cyber-physical systems (CPS) security firm for industrial, healthcare, and enterprise sectors, announced that it has finished the acquisition of Medigate, a leading healthcare IoT security firm. Claroty is now in a unique position to secure the Extended Internet of Things (XIoT) by providing unrivalled visibility, protection, and threat detection for all linked enterprises through a single solution.

“Highly interconnected CPS have become pervasive in industrial and healthcare environments in recent years in order to drive innovation, resilience, sustainability, and better health outcomes. However, greater connectivity begets greater exposure to risks, with serious consequences for patient safety, public safety, and the environment. Together, Claroty and Medigate will combine our deep domain expertise and specialized technologies into a comprehensive platform that will extend across all types of CPS and connected devices to secure the XIoT. We envision a future where cyber and physical worlds safely connect to support our lives, and with Medigate’s talented team and powerful capabilities, we have what it takes to make this vision a reality,” said Yaniv Vardi, CEO of Claroty.

Across 2021, ransomware attacks targeting CPS in all industries hit new highs, with 82 percent of healthcare systems reporting IoT cyber intrusions in the last 18 months. As a result, a slew of new security legislation have emerged, pushing corporations to take action.

“By joining forces between Medigate and Claroty, we are forming the only cybersecurity company that can deliver a best-of-breed solution for all the critical assets across healthcare, industrial, and enterprise environments that comprise the XIoT. Our combined talent, technology, and IP empowers us to truly change the way organizations identify, secure, and manage these connected assets on a massive scale, thereby delivering even greater value for our customers,” said Jonathan Langer, co-founder and CEO of Medigate.

Claroty’s $400 million Series E round, announced in December 2021, was used to fund the transaction. SoftBank Vision Fund 2, Bessemer Venture Partners, Schneider Electric, Rockwell Automation, Standard Investments, Team8, and ISTARI were among the investors in the round (a global cybersecurity platform established by Temasek).