Israeli Startup Upwind Security Rejects $4 Billion Datadog Acquisition Offer
Israeli cloud security startup Upwind Security has rejected a $4 billion acquisition offer from Datadog, opting to remain independent following a recent $300 million funding round.
Israeli cloud security startup Upwind Security has reportedly rejected a $4 billion acquisition offer from American tech firm Datadog, choosing instead to remain an independent company. The decision highlights the rapid growth and high valuation of the young cybersecurity firm.
Massive Funding and Continued Independence
Just last month, Upwind completed a massive $300 million funding round at a valuation of approximately $3.8 billion, marking a significant increase in just a few months. Shortly after, the company acquired local startup Aegis in a stock deal estimated at tens of millions of dollars. According to a report by The Information, Datadog's $4 billion bid was turned down as management decided to pursue an independent path of growth.
This is not the first time the two companies have held acquisition talks. Last year, negotiations took place for Datadog to acquire Upwind for $1 billion, but the deal ultimately fell through. Upwind subsequently raised $250 million at a $1.5 billion valuation, led by Bessemer Venture Partners.
"Upwind continues to scale rapidly as an independent entity, cementing its position as a major player in cloud security," market analysts note.
Rapid Rise in the Cybersecurity Sector
Founded in August 2022 by CEO Amiram Shachar alongside Tal Zur, Lavi Freedman, and Liran Polak—all alumni of Spot.io, which Shachar sold to NetApp for $450 million in 2020—Upwind has become one of Israel's fastest-growing tech firms in the post-Wiz era.
The company develops an advanced Cloud Native Application Protection Platform (CNAPP) focused on real-time runtime monitoring for applications and AI agents, helping enterprises precisely identify real threats and reduce false positives.
