Schwarz Group has announced the acquisition of a majority stake in Israeli cloud cyber security startup XM Cyber for a reported $700 million, as the EU retail giant looks to grow its digital business.

Headquartered in Tel Aviv, XM Cyber specialises in proactive prevention of cyber-attacks using the attacker’s perspective. By discovering critical attack paths across on-premises and multi-cloud networks, the firm’s solutions aim to help organisations close security gaps before systems are compromised.

Christian Müller, chief information officer of Schwarz Group, said the addition of XM Cyber adds a “deep technical understanding and innovation” that will compliment Schwarz’ existing portfolio for advanced cybersecurity services.

“Finding and closing security gaps from an attacker’s perspective is a disruptive approach to the way organisations can proactively protect their networks,” he said. “XM Cyber’s solution builds on our strong IT security to further protect our customers, partners, and ourselves as a company.“

Headquartered in Germany, Schwarz Group has become one of the world’s largest retailers, known particularly for its ownership of EU staples such as Lidl and Kaufland supermarkets.

The group said XM Cyber’s comprehensive knowledge in securing complex hybrid cloud networks was a driving factor behind the acquisition, with the startup set to boost the groups expanding digital venture.

Upon completion of the acquisition, XM Cyber will continue to operate independently with its current branding, full suite of products, and support structure, it added.

Noam Erez, co-founder and CEO of XM Cyber, says the move will provide its business with “immense potential” to further expand and develop its business model.

“We are thrilled to become part of the Schwarz Group,” he said. “With the backing and international footprint of the largest European retailer, we can accelerate innovation and growth and further strengthen our position in the global cybersecurity market.”