The Lidl sign is displayed outside a branch of the supermarket on Nov. 18, 2015, in Bristol, England. (Photo by Matt Cardy/Getty Images)

In an unusual acquisition, Schwarz Group, the largest retailer in Europe, best known for its Lidl and Kaufland grocery store brands, has acquired Israeli cloud security company XM Cyber for $700 million.

XM Cyber will continue to operate independently, offering its full suite of products under its current brand and support structure, while extending its expertise and technology to Schwarz Group, which expects to leverage XM Cyber’s cloud security expertise to expand and secure its digital services.

Rolf Schumann, chief digital officer of Schwarz Group, said the new arrangement with XM Cyber complements the security components of the digital business models of the large retailer.

“We continuously extend our range of digital products for our customers, for example, our online shops, our marketplace, or our loyalty programs,” said Schumann. “With the solutions of XM Cyber, we can offer our customers even more services and evolve the shopping and customer experience in a more holistic way.”

Noem Erez, co-founder and CEO at XM Cyber, added that the IT division of the Schwarz Group has clearly expanded its commitment to cybersecurity through this acquisition. 

“Schwarz Group will use XM Cyber’s platform for its back-end systems, including partners, as well as its outbound e-commerce solutions,” Erez said. “In addition, the solution will complete Schwarz's IT services offering from StackIT.”

XM Cyber focuses on hybrid-cloud security posture management. The company takes on the attacker’s perspective to find and remediate critical attack paths across on-premises and multi-cloud networks. XM Cyber customers use its attack path management platform to find new exposures, including exploitable vulnerabilities and credentials, misconfigurations, and user activities.