A Reuters report indicates that eBay Inc (NASDAQ:EBAY)‘s online payment unit, PayPal is all set to buy Israel’s CyActive. The deal is valued at $60 million according to reports. CyActive is a cyber security company, as revealed in the reports. There has not been any comment from the officials of CyActive over the deal.
The Israeli company, CyActive claims that its security products could sense future cyber attacks and offer a variety of security features to companies including utilities detection and prevention. Earlier in September, CyActive had received a strategic investment from Siemens’ venture capital unit. It is interesting to learn that Siemens AG (ADR) (OTCMKTS:SIEGY) had made a pact with Israeli Venture Capital firm, Jerusalem Venture Partners (JVO) for investing into CyActive. JVP also held a stake in another Israeli cyber security firm named CyberArk Software, which made its debut on Nasdaq in September. The acquisition would be second in Israel for eBay Inc (NASDAQ:EBAY)’s PayPal that had bought FraudSciences in 2008. The value of the said deal was $169 million back then.
Earlier in March, it came to light that Bay Inc (NASDAQ:EBAY)’s PayPal is in process of acquiring Paydiant, a platform to help retailers create their own mobile wallet apps, loyalty card or digital coupon support. The acquisition was estimated to be around $280 million. The deal holds special value for PayPal given the customer base of Paydiant, which includes CapitalOne, Subway, and MCX. Moreover, PayPal signed the deal following the launch of Apple Pay and Samsung’s entry into the online payment space.
PayPal managed nearly $45.6 billion worth of mobile based payments in 2014, but the uptick in the mobile transactions coupled with entry of giant players such as Google Inc. (NASDAQ:GOOG) and Apple Inc. (NASDAQ:APPL) is nerving for anyone in the field. It could be said that PayPal will keep on adding features to its online payment catalog through such acquisitions.