US monitoring and analytics company Datadog (Nasdaq: DDOG) is in advanced talks to acquire Israeli cybersecurity company Upwind Security for as much as $1 billion, according to sources close to the matter. The terms of the deal are still being agreed but it is likely to include both cash and shares.
Upwind operates in the growing cloud applications security space and is developing solutions that protect software systems in real time – in other words when an application is running in the actual cloud environment. Upwind’s solution does not make do with just static code and configuration analysis, but also identifies and prevents threats while in operation, making it particularly relevant to the worlds of micro-services, containers, and dynamic environments.
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Upwind was founded in 2022 by four well-known entrepreneurs in Israel’s tech scene: CEO Amiram Shachar, Liran Polak, Tal Zur and Lavi Ferdman who previously founded cloud security management company Spot.io, which was sold to NetApp for $450 million in 2020. Upwind has raised $180 million to date, from prominent funds such as TCV, Cyberstars, Greylock, and Craft Ventures. The company currently has about 200 employees, most of them in Israel and the US.
Datadog is listed on Nasdaq with a market capital of over $50 billion. It offers a platform for monitoring, securing, and analyzing the performance of cloud infrastructure and applications, and serves large corporate clients in a range of industries. The company has previously made acquisitions of Israeli startups, including Secret, but the deal with Upwind is expected to be its largest and most significant in Israel to date.
Published by Globes, Israel business news – en.globes.co.il – on July 22, 2025.
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