Microsoft plans to acquire Israeli cloud-based, cybersecurity start-up Adallom for $320 million.

The reported sum is the most Microsoft has paid for an Israeli tech firm, and places Adallom among the top 25 biggest buyouts made by Microsoft. Last year, Microsoft bought another Israeli cybersecurity start-up, Aorato, for a reported $200 million.

Adallom provides back-end security to companies that run cloud-based services and has a system for monitoring potential hacks. It is expected to become the centre for Microsoft's cybersecurity business in Israel.

Earlier this year, Microsoft executive Tzahi Weisfeld said: “From Microsoft’s perspective here in Israel, it’s been a great year. Three out of our nine most recent acquisitions were Israeli, and we’re very proud of that.”

Adallom was founded in 2012 by CEO Adam Rappaport, Ami Luttwak, and Roy Reznik, who all served in elite IDF technology units. Headquartered in Palo Alto, California, Adallom’s Israel development centre is in Tel Aviv.