Skybox Security Shuts Down, Lays Off 300 Employees as Tufin Acquires Assets

Israeli cybersecurity firm Skybox Security has ceased operations and laid off its entire workforce, impacting 100 employees in Israel and 200 in the United States. Employees were informed that their final salaries would not be paid, with Israeli workers advised to seek assistance from the National Insurance Institute. CEO Mordecai Rosen officially announced the shutdown during an internal meeting, followed by an email detailing the closure process. The company stated that it is entering liquidation, which involves halting operations, selling assets, and using proceeds to settle debts, including employee compensation.

Simultaneously, Tufin, another Israeli cybersecurity company, acquired Skybox’s business and technology assets. In a statement, Tufin CEO Ray Brancato assured Skybox customers of continued support and a smooth transition. He emphasized Tufin’s financial stability, growth, and commitment to maintaining network security solutions without service disruptions. Acknowledging the challenges faced by Skybox customers, Tufin positioned itself as a long-term, reliable alternative for their cybersecurity needs.

Skybox had once been a well-funded company, securing $150 million in 2017 from CVC Capital Partners and Pantheon Ventures, bringing its total funding to $288 million. In 2016, Providence Equity Partners acquired a 75% stake for $96 million, valuing Skybox at $120 million. Despite these significant investments, the company struggled to sustain its financial health, ultimately leading to its abrupt shutdown.

Founded in 2002 by Gidi Cohen, Skybox specialized in cybersecurity management software designed to analyze network risks and provide optimized security recommendations. Its technology catered to complex IT environments, including physical, cloud, and operational technology (OT) infrastructures. Under Rosen’s leadership, the company aimed to expand its capabilities but faced increasing market challenges.

The sudden closure of Skybox Security marks a significant shift in the cybersecurity industry, leaving employees without pay and customers seeking alternatives. While Tufin steps in to support affected clients, the downfall of Skybox serves as a cautionary tale about financial sustainability and competition in the ever-evolving cybersecurity landscape.