Talking on the Globes Israel Enterprise Convention, Test Level Software program Applied sciences Ltd. (Nasdaq: CHKP) government chairman Gil Shwed informed Globes tech editor Assaf Gilead concerning the challenges going through the cybersecurity sector, the acquisitions his firm has made, and if her personally plans to return to middle stage.
Shwed started by assessing whether or not there’s a bubble in tech shares. “We have to separate the capital market from the actual world,” he stated. “AI is a revolution, not a bubble, however are there any shares available in the market which might be overvalued? It might very effectively be. The possibility that the revolution will change the world is excessive, however on the similar time the possibility that there are shares which might be overvalued on Nasdaq can be excessive. In 2001, there was a bubble following the Web revolution, however 20 years later the Web remains to be alive and kicking and can create extra revolutions. The revolution occurred, however the market was shaken.
“AI might be a pressure in every thing we do, and particularly in cybersecurity. A couple of years in the past, they predicted that there could be a scarcity of cybersecurity specialists who function the programs, however maybe AI will shut this hole, and people will return to overseeing the programs. Then again, it might create an assault on all of our infrastructure. It used to take weeks or months, however right this moment it’s taking place at a loopy tempo. We have to shield the info we share with AI, and communication between brokers can be a gap for cybersecurity vulnerabilities. I consider that simply as there have been risks on the Web, which have additionally materialized, however the world remains to be safer than it was 40 years in the past, so too is cybersecurity.”
A deal valued at $300 million
To adapt its operations to rising challenges, Test Level purchased Swiss firm Lakera, which protects AI brokers, for $300 million. “We have been searching for firms that would assist us within the discipline of AI, to strengthen our nice product. We checked out a number of firms, together with Israeli ones, that have been glorious and we wished to amass them, however not all of them wished to be bought, or wished offers at a better worth. In the long run, we got here to the Swiss firm and we’re completely happy. It seems that there’s a depth of know-how there that we have not encountered in years. The corporate has an impartial mannequin and makes certain that the communication between the brokers is nice.”
Shwed’s skepticism on the pricing of know-how shares issues the cybersecurity discipline. “I sound like a damaged report, however the query is whether or not we handle to promote to prospects and create worth for them and subsequently revenue from the income. In the present day the market is disconnected, as a result of it’s measured by whether or not firms handle to boost cash, not whether or not they create worth for purchasers and translate it into revenue. The personal market is constructed on the truth that there are massive firms that purchase small ones and handle to handle their issues. Wiz is a large phenomenon, however they didn’t remedy the issue of making worth, however fairly transferred it to Google.”
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As for competitors from the tech giants, which have not too long ago taken on important cybersecurity actions, Shwed stated, “There’s a livelihood for all and you may see it with cybersecurity firms. The competitors in our market is main and I might not underestimate it, however at Test Level we’re proving that it’s attainable to generate a number of many years of buyer worth, income and earnings, and after that returns for shareholders. So it’s undoubtedly attainable to succeed at this.”
Shwed spoke about being the corporate’s greatest shareholder, even after promoting slightly over one million Test Level shares final quarter, for about $205 million. “I hope to stay the largest shareholder. So far, I’ve primarily exercised choices, in anticipation of their expiration. Thus far, ready for the end line earlier than exercising them has confirmed itself to be a profitable coverage. I’ll promote shares, however that’s actually not my technique or coverage.”
As for the query of whether or not he’s completely happy along with his new standing, a yr after taking a step again from managing the corporate, which he left within the fingers of Nadav Zafrir. “I’ve not been CEO for a yr. I stand up within the morning and another person has to unravel the issues and I actually get pleasure from it. It is one thing totally different to assist somebody within the CEO position, and to my delight, Nadav Zafrir does an excellent job. I discover that working in a a lot much less intensive method is enjoyable. Within the meantime, I actually get pleasure from it that I do not work 12 hours a day.”
Full disclosure: The convention was held in cooperation with Financial institution Hapoalim and Phoenix Group and sponsored by, Bezeq, El Al, Tnuva, Electra, Armis, Haifa Group, Hamilton Lane Israel, Doral, Shikun & Binui, BlackRock, Bazan, Pagaya, KPMG, Nespresso, Egged, Zeekr, ICL and the Israel Medical Affiliation, and with the participation of Israel Ports. Co., Mekorot, Ashdod Port, and the Israel Innovation Authority.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on November 23, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
