Microsoft (NASDAQ MSFT) is said to have acquired Aorato Ltd., an Israel-based cybersecurity startup. According to the WSJ, Microsoft will pay around $200 million in the deal, which was said to have been finalized over the last day or two.

Talks between the two companies were first reported last July. This is the first deal for Microsoft in Israel since the company bought 3DV Systems in 2009.

Aorato’s sophisticated technology uses machine learning to detect suspicious activity on a company’s network. It understands what normal behavior is and then identifies anomalies, so a company can quickly see suspicious behavior and take appropriate measures to help protect itself. Key to Aorato’s approach is the Organizational Security Graph, a living, continuously-updated view of all of the people and machines accessing an organization’s Windows Server Active Directory (AD).

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The following was posted by Takeshi Numoto – Microsoft Corporate Vice President, Cloud and Enterprise Marketing – to the company’s blog on Thursday:

“I’m pleased to announce today that Microsoft has acquired Aorato, an innovator in enterprise security. We are making this acquisition to give customers a new level of protection against threats through better visibility into their identity infrastructure. With Aorato we will accelerate our ability to give customers powerful identity and access solutions that span on-premises and the cloud, which is central to our overall hybrid cloud strategy.

We all know corporate security is more important than ever. Nearly every day there are more headlines about breaches, fraud and data loss. Unfortunately, compromised passwords, stolen identities and network intrusion are a fact of life. Companies need new, intelligent solutions to help them adapt and defend themselves inside the network, not just at its edge.”

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AD is used by most enterprises to store user identities and administer access to critical business applications and systems. Therefore, most of the enterprise customers of Ad’s should be able to easily take advantage of Aorato’s technology. This will complement similar capabilities that Ad has developed for Azure Active Directory, their cloud-based identity and access management solution.

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