Microsoft set to buy cyber security company RiskIQ amid rise in global attacks

The $500m deal could be announced in the next few days

Microsoft is buying RiskIQ, a San Francisco-based cyber security company whose cloud software helps clients to detect security threats. EPA

Microsoft has agreed to acquire RiskIQ, a security software maker, as the technology company tries to expand its products and better protect customers amid a rising tide of global cyber attacks.

The deal will be announced as soon as the next few days. Microsoft will pay more than $500 million in cash for the company.

San Francisco-based RiskIQ makes cloud software that detects security threats, helping clients understand where and how they can be attacked on complex webs of corporate networks and devices. Its customers include Facebook, BMW, American Express and the US Postal Service, according to the company’s website.

Known for its annual report on security called the “Evil Internet Minute”, RiskIQ has raised $83m from companies such as Summit Partners and Battery Ventures, according to Crunchbase. It was founded in 2009.

A spokesman for Microsoft declined to comment while RiskIQ did not immediately respond to a request for comment.

Microsoft has been adding security features to products such as Windows and its Azure cloud services to protect individual machines and detect attacks on networks.

The company has also added personnel who probe Microsoft’s own products for vulnerabilities, help clients clean up after a cyber attack and runs a lab called the Microsoft Threat Intelligence Centre that closely tracks nation-state hackers.

The software maker has also acquired several companies to expand its security capabilities. Last month, Microsoft bought ReFirm Labs, a maker of technology to secure Internet of Things devices, for an undisclosed amount.

In a blog post announcing the deal, the company said it has 3,500 employees working on security at Microsoft and a mission to help protect customers “from the chip to the cloud”.