Claroty Raises Additional $400 Million in Funding, Acquiring Medigate

Claroty has raised $400 million in Series E funding and is acquiring Medigate, a health care IoT security platform provider.

The round brings Claroty’s total funding to $635 million. New investor SoftBank Vision Fund 2 led the funding round with existing investors Bessemer Venture Partners, Schneider Electric and more.

Claroty said acquiring Medigate is an “enormous step forward” in its mission to secure the cyber-physical systems (CPS) of connected organizations.

Medigate pairs its understanding of medical workflows and proprietary protocols with cybersecurity threats. Therefore, hospitals can connect and operate all clinical assets on their network while ensuring patient privacy and safety.

Claroty Partners to Benefit From Funding

Claroty’s Yaniv Vardi

Yaniv Vardi is Claroty‘s CEO.

“Our Series E funding is the largest round ever in our space,” he said. “We will plan to use a portion of this funding to bolster our go-to-market efforts with channel partners, as well as our joint marketing campaigns.”

With Medigate, Claroty can further strengthen its partnerships by driving new revenue opportunities via its extended reach and capabilities.

“As a result, our partners will be uniquely equipped via their relationship with Claroty to support even more customers, with more use cases and needs, across more verticals,” Vardi said. “Both Claroty and Medigate primarily sell through the channel, and we have many mutual MSSPs in common already. In the near future, Claroty partners will be able to cross-sell Medigate’s technology platform and vice versa.”

Many of Medigate’s partners are specific to the health care vertical. However, the company also has various partners that are shared with Claroty as fulfillment partners.

“This, combined with Claroty’s well-established Focus Partner Program, means that we can increase value to Medigate partners by enabling them to become core to our strategy and vast partner ecosystem,” Vardi said.

Medigate Good Fit For Claroty

In the world of CPS, security needs and challenges vary widely depending on the vertical, Vardi said. For example, securing the machinery in a water utility is very different from securing an MRI machine or CT scanner.

“But the more that these systems converge, the more organizations need a security solution that can cover everything – enter the extended IoT (XIoT),” he said. “This is why Medigate is such a good fit for us. We both have deep expertise in our respective domains, and together we are able to offer an unbeatable combination of breadth and depth to address our customers’ differentiated needs as they continue to evolve.”

The XIoT encompasses an ever-expanding range of connected assets that Claroty can now secure, Vardi said.

Claroty’s channel partners would prefer to have one platform through which to sell, support and service their customers, he said. Joining forces between Claroty and Medigate meets that need.

Jonathan Langer is Medigate‘s co-founder and CEO.

“Becoming a part of Claroty means our customers will not only continue to receive the best security for their health care IoT devices, but will also gain coverage for the wide array of industrial IoT assets in their networks, without having to stitch together disparate tools for each,” he said.