There is yet more M&A coming out of the security industry. In the latest development, Check Point, the enterprise cybersecurity company, has picked up Perimeter 81 to beef up its tools for remote and hybrid workers. Check Point will pay around $490 million on a “cash free, debt free” basis for the Israeli startup, it said in a statement today.

The acquisition comes amid a major funding crunch for startups, particularly those looking to raise larger growth rounds. Perimeter 81’s exit is coming at a big discount to its last valuation: It raised $100 million in June 2022 at a $1 billion valuation, according to PitchBook data. Its investors had included Insight Partners, Maverick Ventures Israel and Francisco Partners, among others.

Check Point, which has its roots in Israel, too, but is now headquartered in San Carlos, Calif., is publicly traded and currently has a market cap of over $15 billion.

Perimeter 81 has some 3,000 customers globally. This deal both will help Check Point take out a direct competitor but also bring in more tools to grow its offerings and bring in more customers.Check Point has made its name as a specialist in the various aspects of enterprise cybersecurity, with product lines across the many ways that a company might engage with cloud services, network security powered by AI and predictive techniques, and proactive threat detection. It also has a product line focused on remote and hybrid workers, and it appears that Perimiter 81’s technology will be used to bolster that business. Its focus is on “security service edge” services, secure access for workers using company sites, cloud services, data centers, and the internet at large.“With the advent of hybrid work and the rise of cloud transformation, the demand for security services that expand beyond the network perimeter is increasing,” says Gil Shwed, CEO at Check Point Software Technologies, in a statement. “By leveraging Perimeter 81’s capabilities and integrating them into the Check Point Infinity platform we continue with our vision to deliver the best security through comprehensive, collaborative and consolidated solutions.”

“This strategic move marks an exciting period for our company, partners, and customers. By joining Check Point, a global leader in cyber security for over 30 years, we aim to deliver the premier SASE platform in the market,” added Amit Bareket, CEO at Perimeter 81. “Our interconnection represents a significant step towards a comprehensive and scalable security for the modern era. We look forward to the positive impact we will jointly create.”

The deal is expected to close in the third quarter of this year.