Amadeus Capital Partners, the technology investor, today announced that it had led a $10 million third round financing of Israeli network security company, ForeScout Technologies. Previous investors in ForeScout, including Accel Partners and Pitango, are also participating in this round. The funding will be used to build sales and customer support, particularly in Europe.

ForeScout, based in Israel and California, has developed a range of patented network security products that take an integrated, layered approach to the different aspects of enterprise network security, from policy enforcement (access control, regulatory compliance etc.) to preventing intrusion (worms, espionage, hackers etc.) and protection against vulnerability (unpatched systems, peer-to-peer applications etc.).

ForeScout currently sells to over 275 enterprises in banking and finance, healthcare, energy and entertainment businesses as well as for government and military applications. The company has recently launched CounterACT 5.0, which builds on the existing strength of its core patented technology, Active Response. CounterACT 5.0 is a pioneering integrated security platform that prevents intrusion as well as providing network access control, thus enabling enterprises to meet full regulatory data security requirements. 

IDC estimates the network security market to be growing at over 30% per annum and expected to continue at this rate to at least 2009. Symantec’s recently released eighth Internet Security Threat Report revealed a 54% increase, in the first six months of 2005, in malicious code attacks exposing confidential information. Security experts noted that the legions of infected computers are adding to the number of networks controlled by hackers, now running at an average of 10,352 active network computers per day.

Richard Anton, the Amadeus Director who joins the ForeScout Board, said: “Threats to network security are a key issue for enterprises today. Businesses and governments are constantly seeking clever, effective products to meet these threats. In our view, the products that will lead this market are those that can reduce management burden and successfully integrate the different layers of protection required. ForeScout is pioneering in both these respects and we are delighted to be participating in the company’s growth.”  

Advisers to Amadeus on the transaction were David Chertok and Asaf Harel at Meitar (legal), Sagit Reich at Ernst & Young, Israel (accounting) and Vladimir Sherman at Eitan Group (IP). ForeScout was advised by Anthony McCusker and David W.Van Horne at Gunderson Dettmer (legal).