U.S. cybersecurity leader CrowdStrike is in advanced negotiations to acquire Israeli startup Orion Security for approximately US$500 million. Orion has developed an AI-powered platform that protects sensitive corporate data by analyzing the context of how information is used and moved inside organizations. The company has raised US$38 million to date, though the negotiations have not yet resulted in a completed deal and terms could still change.
Orion Security's AI-Powered Approach
Founded in 2024, Orion is led by CEO Nitay Milner, a former product leader at Epsagon, which was acquired by Cisco, and CTO Jonathan Kreiner, previously head of application security at WalkMe. The company employs approximately 20 people and is expanding its operations in Israel and New York. Its platform is designed to replace traditional data loss prevention, or DLP, tools with a more context-aware approach to securing sensitive corporate data.
Funding and Investor Support
In February 2026, Orion raised US$32 million in a Series A round led by Norwest Venture Partners, with participation from IBM and existing investors PICO Venture Partners and Lama Partners. The round brought its total funding to US$38 million, following a US$6 million Seed round announced in March 2025. This backing has supported the development of its AI-native data security platform and the expansion of its team in Israel and New York.
Challenges with Traditional Data Loss Prevention
Traditional data loss prevention tools rely on manually configured security policies to prevent sensitive information from leaving an organization. These systems require ongoing maintenance and frequently produce large numbers of false-positive alerts while still missing some potential leaks. As a result, security teams often face alert fatigue and incomplete visibility into how sensitive data is actually being used within the business.
Orion's AI Agent Approach
Rather than relying primarily on predefined rules, Orion uses specialized AI agents to monitor data movement continuously and assess its context. The platform analyzes factors including the sensitivity of the information, its history, the identity of the user, and the intent behind an action. Orion says this approach identifies and prevents potential leaks before they occur, reduces false positives, and detects incidents that traditional tools may miss.
CrowdStrike's Recent Israeli Acquisitions
The proposed Orion deal would be the latest in a series of Israeli cybersecurity purchases by CrowdStrike. In January 2026, the company agreed to acquire browser security startup Seraphic Security for approximately US$400 million. That followed the November 2024 agreement to acquire Adaptive Shield for about US$300 million, adding technology for securing SaaS applications and identities.
A Pattern of Israeli Expansion
CrowdStrike's earlier Israeli deals also highlight a consistent acquisition strategy. The company acquired Flow Security in a deal estimated at US$200 million to US$220 million, and it purchased application security startup Bionic for around US$350 million in September 2023. In July 2026, it agreed to acquire the technology, source code, and more than 45 patents of XM Cyber from Germany's Schwarz Group.
Negotiations between CrowdStrike and Orion Security have not yet produced a completed agreement, but the reported terms reflect strong demand for AI-native data protection. If finalized, the deal would further integrate Orion's context-aware data security capabilities into the Falcon platform and deepen CrowdStrike's presence in Israel's cybersecurity ecosystem. It also highlights the ongoing appetite for Israeli cybersecurity startups addressing evolving enterprise data risks.
Source: Calcalist