Cato Networks completes $100m secondary offering

Cato Networks completed a $100 million secondary deal, allowing employees and early investors to cash out a portion of their holdings. This is the company's second nine-figure secondary transaction in just over a year, following a $120 million secondary deal in summer 2025. The company's annual recurring revenue has surpassed $415 million, up 42% year-on-year.

Cato Networks, the Israeli cybersecurity company, has completed a secondary deal worth approximately $100 million, according to sources. The deal allowed hundreds of employees and existing investors to cash out a portion of their holdings, converting shares into cash without waiting for an IPO or company sale. This marks the company's second significant liquidity event in just over a year. In summer 2025, Cato completed a major capital raise totaling $409 million at a $4.8 billion valuation, which included a $120 million secondary transaction involving 1,400 current and former employees. The valuation for the current secondary deal remains undisclosed. Cato Networks, founded in 2015 by Shlomo Kramer and Gur Shatz, operates in the SASE sector, providing cloud-based networking and security services. The company's annual recurring revenue has surpassed $415 million, up 42% year-on-year. Cato serves over 4,800 customers worldwide and employs 1,900 people, about half in Israel. The company stated it aims to balance investor interests with employee benefits from the company's growth.