The acquisition will include an initial controlling stake in Radiflow with a phase 2 planned for Q1 2025. “We are confident that this transaction will enable Radiflow to continue its growth in the fast-growing OT Security market,” said Ilan Barda, CEO of Radiflow.
Radiflow, an Israeli OT cybersecurity startup announced that it is being acquired in a two-phase process by Sabanci Group, market leaders in the financial services, energy, and industrial sectors. The initial phase entails a $45 million primary and secondary investment in several installments to reach a majority stake in Radiflow. In the second phase, Sabanci intends to acquire a 100% stake in Radiflow by 2025.
A recent increase in demand for comprehensive OT cybersecurity solutions has allowed for Radiflow to rapidly expand across the US and Europe, doubling its sales in 2021. This growth was based on the launch of a first-of-its-kind platform, CIARA Risk Management, which provides OT facilities with data-driven digital risk assessment by conducting breach attack simulations without having an impact on physical operations. Common in the IT world, this new digitized capability allows for cybersecurity officers (CISOs) to monitor their cyber risk posture in multiple facilities simultaneously and prioritize their security roadmap plans.
Winning multiple awards and contracts from private and government organizations, CIARA has grown Radiflow’s business to protect critical government infrastructure and manufacturing facilities. “This acquisition will allow us to enhance our portfolio and strengthen our positioning in critical industries,” said Ilan Barda, CEO of Radiflow. “We are excited that Sabanci selected Radiflow to materialize its digital transformation growth plan and we are confident that this transaction will enable Radiflow to continue its growth in the fast-growing OT Security market.”
This acquisition provides Radiflow a unique position in the OT security market. By leveraging the extensive industrial footprint of the Sabanci Group, Radiflow plans to further optimize its OT security offering. Barda added, “We believe that the next phase in OT Risk Management is based on industry benchmarks and our collaboration with the Sabanci group subsidiaries will provide us in-depth insights to various industrial sectors and will enable us to continue and provide our customers leading-edge solutions.”
Sabanci Holding recently announced its plan to establish a digital business pillar, which will focus on Advanced Analytics, IoT, and Cybersecurity. The goal is to leverage technology to enhance the global position of Sabanci Group companies and pioneer projects that will have a significant impact on the new economy, particularly in digital technologies. To realize this vision, Sabanci Holding acquired Radiflow, a leading player in cybersecurity with a proven track record. This move marks a critical step in the company’s strategic plan for the digital sphere. With this platform for identity verification, Sabanci Holding can provide their customers with advanced KYC (Know Your Customer) solutions, ensuring that all users are verified and preventing fraudulent activity from taking place. The acquisition of Radiflow will help Sabanci Holding to remain at the forefront of technological innovation and ensure that its customers’ information is secure.
Sabanci Group, Turkey’s leading conglomerate, is a holding company engaged in a wide variety of business activities through its subsidiaries and affiliates, mainly in the banking, financial services, energy, industrials, building materials and retail sectors.
Having a value-focused, data driven ecosystem, Sabancı Group companies operate in 13 countries and supply their products and services to regions throughout Europe, the Middle East, Asia, North Africa and North and South America. Sabancı Holding’s multinational business partners include prominent global companies such as Ageas, Bridgestone, Carrefour, E.ON, Heidelberg Cement, Marubeni and Skoda.
In 2021, Sabanci Group posted combined revenues of TRY 152 billion (~USD 12 billion) and consolidated net income of TRY 12 billion (~USD 1 billion).
Radiflow is an OT Cyber Security company that has unique tools to protect and manage digital OT assets for the long term. Radiflow works directly with Managed Security Service Providers to oversee the discovery and management of all relevant data security points. Radiflow’s unique pinpoint approach brings the businesses’ team into the fold, trading the industry’s one-size-fits-all approach for a calculated, focused, and secured system without inhibiting communication or productivity. With offices in Europe and the US, Radiflow’s solution is installed in over 6000 sites around the globe.