An Israeli-Boston security company that was acquired by a software-focused private equity firm completed its acquisition today by Turn/River Capital in a deal valued at approximately $570 million.
The company, Tufin Software Technologies Ltd., has also made layoffs, citing cost-cutting measures.
A spokesperson for Tufin said the Boston office was minimally impacted and only two employees lost their jobs. In April, Tufin employed 35 people in Massachusetts.
The acquisition was first announced in April. At the time, Tufin CEO Ruvi Kitov wrote in an email to the Business Journal that the acquisition “should not impact the local workforce in any way.”
Today the company confirmed in a statement to BostInno that it has reduced its workforce by 10%. Kitov said these layoffs were made “as part of cost-cutting measures to improve profitability.”
“With this reduction, the company still expects to meet its targets,” Kitov said.
Globes, an Israeli business news outlet, first reported layoffs at Tufin and said that 55 employees were impacted, including 25 employees in Israel. Tufin’s website says it has more than 500 employees worldwide.
Kitov said that Tufin would help laid-off employees with benefits, including “compensation, job placement assistance, and support services during the adjustment process.”
Tufin says it helps more than 2,000 customers manage cybersecurity threats with its network security automation products. The company rolled out a term-based subscription license model last year that allows customers to use the software over a designated period of time.
Kitov co-founded Tufin in 2005. The company reported revenues of $100.8 million in 2020 and $110.9 million in 2021, with net losses of $35.4 million and $36.9 million, respectively.
