Cyera has made a significant move in the cybersecurity landscape by acquiring data loss prevention startup Trail Security for $162 million in cash and stock.

This acquisition integrates Trail's advanced data loss protection capabilities with Cyera’s Data Security Posture Management platform, resulting in the creation of the market's first Unified Data Security Platform.

Trail Security, founded in 2023 and operating in stealth mode, had previously raised over $35 million from notable investors including Lightspeed Venture Partners and CRV.

As part of the acquisition, Cyera will onboard all 40 employees from Trail Security to establish its new DLP division, enhancing its technical expertise.

The leadership teams from both companies share a background from Israel’s Talpiot program, suggesting a strong cultural synergy that will facilitate integration.

With this acquisition, Cyera aims to disrupt the $2 billion data loss prevention market, which is projected to grow to $21 billion by 2034.

The acquisition aligns with a broader trend in the cybersecurity sector, which has seen 67 M&A deals involving VC-backed startups in 2023, surpassing the previous year's total.

Looking ahead, Cyera aims to grow its workforce to over 1,000 employees in the next two years, further solidifying its position in the cybersecurity market.

Currently, Cyera is reportedly in the process of raising an additional $200 million at a pre-money valuation of around $3 billion.

Cyera's CEO, Yotam Segev, emphasized that this acquisition is a pivotal step in reshaping the future of data security, particularly in addressing challenges related to AI and cloud security.

Cyera, which recently raised $300 million in a Series C funding round at a valuation of $1.4 billion, has established a diverse customer base across industries such as healthcare and financial services.

The partnership will enhance Cyera’s platform, which has rapidly expanded to include identity modules and data breach readiness services, ultimately delivering solutions that identify and protect against data risks in real-time.