Symantec buys Luminate to enhance cloud security revenue

Cyber security company Symantec announced the acquisition of Luminate Security, an Israel-based provider of Software Defined Perimeter technology.
Luminate Security teamLuminate’s Secure Access Cloud technology extends the power of Symantec’s Integrated Cyber Defense Platform to users. Financial details were not disclosed.

The acquisition of Luminate continues Symantec’s strategy of acquiring and building security across its portfolio.

Earlier, Symantec acquired rival cyber security company Blue Coat to boost its revenue. Despite the acquisition, Symantec is struggling to enhance its revenue streams in the recent quarters.

Symantec in January said its third quarter fiscal 2019 revenue was $1.211 billion – without showing any growth as compared with the same quarter previous year — with operating margin of 14 percent.

Luminate, founded in 2017, says its technology can securely connect users from any device, anywhere in the world, to corporate applications on-premises and in the cloud. Luminate does not reveal its revenue achievement and clients.

Investors of Luminate Security include US Venture Partners and Aleph. Based in Tel Aviv, Luminate has so far raised $14 million.

Ofer Smadari (CEO), Leonid Belkind (chief technology officer) and Eldad Livni (chief product officer) are the co-founders of the privately-held technology start-up, according to information available on its website.

Luminate’s Secure Access Cloud technology allows enterprises to scale private, “no DNS” access control, granting user connections only to the specific applications and resources for which they are authorized.

“Now and in the future, we anticipate more and more corporations will operate their business on infrastructure that is managed by multiple third parties such as Azure, AWS and Google. Luminate incorporated into Symantec’s Integrated Cyber Defense puts us at the forefront of security in the cloud era,” said Greg Clark, president and CEO, Symantec.

Symantec’s Integrated Cyber Defense Platform unifies cloud and on-premises security across endpoints, networks, email and cloud, protecting against even the most sophisticated threats and reducing cost and complexity.

Symantec reported revenue of $616 million from enterprise security business and $602 million from consumer segment in the third quarter. Symantec is expected to report revenue of $1.19 billion to $1.22 billion — $595 million to $615 million from Enterprise Security and $595 million to $605 million from Consumer segment – in Q4 fiscal year 2019.

Symantec is forecasting revenue in the range of $4.76 to $4.79 billion — $2.36 to $2.38 billion from Enterprise Security and $2.40 to $2.41 billion from Consumer business – during fiscal year 2019.

Rajani Baburajan

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