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Facebook to Buy PrivateCore to Strengthen Data Defenses

Aug. 7 (Bloomberg) -- Facebook Inc. is acquiring PrivateCore, a startup that makes software for protecting data, to strengthen the security of its systems.

Terms of the deal weren’t disclosed. Facebook has been working to improve the security of its social network with encryption and the PrivateCore acquisition is part of the move to build up defenses, Chief Security Officer Joe Sullivan said in an online post.

Breaches and hacks have become common, straining the relationship of companies with their customers whose data may get compromised. Earlier this week, a U.S. security company said a gang of hackers in Russia had amassed 1.2 billion sets of looted user names and passwords. Companies from Target Corp. to EBay Inc. to Snapchat Inc. have also experienced breaches within the past year.

“Over time, we plan to deploy PrivateCore’s technology directly into the Facebook server stack,” Sullivan wrote in his post.

Facebook saves everything its more than 1 billion users create, with its servers prioritizing saving a photo of dinner just as much as a photo of a wedding. In recent years, the company has taken more direct responsibility for all the data, moving much of it to servers the Menlo Park, California-based company designed itself.

PrivateCore, based in Palo Alto, California, was founded in 2012 by security veterans from Google Inc. and VMware Inc., according to the company’s website. The startup is backed by Foundation Capital

PrivateCore Chief Executive Officer Oded Horovitz wrote in a blog post that joining with Facebook gives the company scale to let it pursue making “the world’s connections more secure.”

To contact the reporter on this story: Sarah Frier in San Francisco at sfrier1@bloomberg.net

To contact the editors responsible for this story: Pui-Wing Tam at ptam13@bloomberg.net Cecile Daurat

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