Cato Networks acquires AI security startup Aim Security
Israeli cybersecurity company Cato Networks has acquired AI security startup Aim Security in its first ever acquisition, reflecting the broader industry rush to address security challenges posed by artificial intelligence adoption.
The deal combines Cato’s Secure Access Service Edge (SASE) networking platform with Aim’s AI security capabilities, allowing the company to protect customers from threats associated with generative AI tools and applications. Financial terms were not disclosed.
The acquisition underscores how cybersecurity companies are scrambling to develop solutions for AI-related risks as enterprises rapidly adopt AI tools without fully understanding potential vulnerabilities. Aim’s technology addresses three key areas: securing employee use of public AI applications, protecting private AI systems, and managing security throughout AI development lifecycles.
“AI transformation will eclipse digital transformation as the main force that will shape enterprises over the next decade,” said Shlomo Kramer, CEO and co-founder of Cato Networks. “With the acquisition of Aim Security, we’re turbo-charging our SASE platform with advanced AI security capabilities to secure our customers’ journey into the new and exciting AI era.”
Cato’s move comes as the company also extended its Series G funding round with an additional $50 million from Acrew Capital, bringing the total round to $409 million.
The acquisition reflects broader consolidation in the cybersecurity sector as companies seek to expand their capabilities to address evolving threats. Palo Alto Networks agreed in June to acquire CyberArk Software for approximately $25 billion, primarily to gain identity security tools that can be integrated with AI programs. Earlier this week, Varonis announced it has acquired SlashNext, an AI-driven email security company, for $150 million.
Aim Security, founded in 2022 and backed by YL Ventures and Canaan Partners, has positioned itself at the forefront of enterprise AI security. The company’s research team recently identified the first reported zero-click AI vulnerability in Microsoft 365 Copilot, dubbed “EchoLeak,” demonstrating the emerging nature of AI-specific security threats.
Cato plans to offer Aim’s capabilities as part of its SASE platform beginning in early 2026, providing existing customers with a migration path from standalone AI security solutions to integrated platform capabilities.
