Israeli cybersecurity firm Skybox Security announced Monday that it was closing its operations and laying off its entire workforce, after selling its technology and business assets to another Israeli cybersecurity firm, Tufin.
Skybox CEO Mordechai Rosen informed employees of the company's closure in a meeting on Monday, according to employees present. Rosen explained the company would halt operations immediately, liquidate assets and use proceeds to pay creditors, including workers.
However, employees in Israel were notified they would not receive their final February salaries and were instructed to file claims with the National Insurance Institute. In contrast, U.S.-based employees will receive their full salaries and severance pay from the company. The company had employed approximately 100 workers in Israel and around 200 more in the United States.
Skybox Security, founded in 2002 by Gidi Cohen, Moshe Meiseles and Eran Reshef, raised approximately $280 million over its lifespan. In 2017, the company secured $150 million in funding led by CVC Growth, after earlier receiving investments totaling around $130 million.
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In parallel, Skybox sold its entire business operations and technology to another Israeli cybersecurity firm, Tufin. Tufin announced the acquisition online, reassuring Skybox customers it would provide a smooth transition and ongoing support.
"As the leader in Network Security Policy Management, we are committed to providing a smooth transition for Skybox customers, ensuring you have the tools, expertise, and guidance to continue securing your networks without disruption," Tufin said.
"We know that Skybox customers have been impacted by their sudden closure, and we want to reassure you that Tufin is here for the long run."