Cato Networks completes $100M secondary, second nine-figure liquidity event in a year
What's the deal? Israeli cybersecurity company Cato Networks has completed a secondary deal worth about $100 million, sources told "Globes." Hundreds of employees and existing investors cashed out part of their holdings, converting shares into cash without waiting for an IPO or sale.
Why now? The transaction marks Cato's second nine-figure liquidity event in just over a year. It follows a 2025 raise that started at about $359 million, expanded to $409 million, and valued the company at $4.8 billion — a round that itself included a $120 million secondary in which around 1,400 current and former employees sold shares.
What does Cato do? Founded in 2015 by Shlomo Kramer and Gur Shatz, the company operates in the Secure Access Service Edge (SASE) market, integrating networking and security into a cloud platform. Its technology lets enterprises connect employees, branch offices, data centers, and cloud applications while managing security centrally.
By the numbers: Cato's annual recurring revenue has surpassed $415 million, up 42% year-on-year. It serves over 4,800 customers and employs 1,900 people, about half in Israel.
Why it matters: Unlike a capital raise, secondary proceeds go to selling shareholders rather than the company. "It is important for us that they share in the value they create," Cato said, adding that it aims to balance that with investors' interests. The valuation for the new deal and the split between employee and investor shares remain undisclosed.
The signal: Cato joins a run of Israeli tech secondaries letting staff and early backers cash out before an exit. Earlier this month, AI company Wonderful completed a $170 million secondary alongside a $550 million raise at a $5 billion valuation — a sign that large private companies increasingly offer liquidity at earlier stages, once tied almost entirely to an IPO or acquisition.
Read more: en.globes.co.il
Image credit: Generated with Gemini
