Cato Networks acquires Aim Security, revenue tops USD $300 million
Cato Networks has acquired Aim Security and announced it has exceeded USD $300 million in annual recurring revenue, alongside an expanded Series G financing round now totalling USD $409 million.
The acquisition marks Cato Networks' first purchase of another company and is expected to enhance its cloud security offerings, particularly in the area of secure enterprise adoption of artificial intelligence (AI) agents and applications. This new direction comes amid growing security, compliance, and privacy challenges associated with the rising use of AI technologies in the enterprise sector.
AI and security posture
Shlomo Kramer, Chief Executive Officer and Co-founder of Cato Networks, said that AI would play an increasingly central role in shaping business operations. Addressing the motivation behind the acquisition, Kramer stated,
"AI transformation will eclipse digital transformation as the main force that will shape enterprises over the next decade. 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."
Aim Security was founded in 2022 and is known for its work in AI security solutions, with backing from YL Ventures and Canaan Partners. Its clients include some Fortune 500 and Forbes Global 2000 companies.
Aim Security's solutions
Aim Security's platform provides security for multiple AI use cases. It identifies and manages the use of public AI applications by employees, addresses the protection of internal AI applications and agents, and delivers tools for securing AI development lifecycle through its AI Security Posture Management (AI-SPM) tool. One focus is on enabling employees to use public and enterprise AI agents, such as Microsoft Copilot, and secure new AI development activities with agents such as Cursor and Model Context Protocol servers.
The company's AI Firewall is designed to safeguard internal AI systems and enforce organisational policies. Aim Security's tools seek to address risks at every stage, including runtime attacks and vulnerabilities during model development and deployment.
Integration with Cato SASE Platform
Cato Networks has developed a cloud-native Secure Access Service Edge (SASE) platform that manages security for network traffic across users, applications, and devices. With Aim Security's integration, the platform gains capacity to monitor and protect AI workflows, including those running between on-premises operations and cloud data centres.
Matan Getz, Co-founder and Chief Executive Officer of Aim Security, highlighted the role Aim's technology plays in supporting customers adapting to AI-based systems.
"One of the world's largest financial services companies deployed Aim to secure its AI adoption. Aim had purpose-built a broad AI security platform, grounded in cutting-edge research and patented technology, designed to seamlessly integrate into complex enterprise environments. Aim's solutions enable businesses to securely reap the benefits of their AI investments."
Aim Security's research team recently uncovered the first published Common Vulnerabilities and Exposures (CVE) zero-click AI vulnerability in Microsoft 365 Copilot, named "EchoLeak" (CVE-2025-32711), according to the announcement.
Funding and platform expansion
Alongside the acquisition, Cato Networks reported surpassing USD $300 million in annual recurring revenue and confirmed an additional USD $50 million investment from Acrew Capital. This brings the total for its Series G funding round to USD $409 million, maintaining previous terms and valuation. The company attributes recent financial growth to the expanded customer adoption of SASE-based infrastructure and increasing concerns about AI security.
Customer migration and future availability
Cato Networks stated that existing customers requiring AI security features can already deploy Aim's technology. The company will incorporate Aim's features into the Cato SASE Cloud Platform from early 2026, with a migration path intended for customers who have used the standalone Aim solution in advance of full integration.
The company emphasised its modular approach, enabling customers to adopt security, networking, and AI capabilities according to their needs under a single licence. The combined technologies aim to address risks associated with AI deployments as businesses further modernise their digital infrastructure.