Cybersecurity company Check Point Software Technologies Ltd. signed a deal to acquire Perimeter 81 for $490 million in a cash-free, debt-free deal that is less than half of what the startup was valued at fourteen months ago.

The agreement is expected to close in the third quarter, Check Point said in a statement Thursday. Both companies have Israeli roots, and Perimeter is based in Tel Aviv.

Check Point’s shares rose 2.3% to $129.29 at 10:55 a.m. in New York.

Perimeter 81, which offers cloud-based security solutions, was valued at $1 billion in its last fund-raising round in June 2022. The sharp decline in its price highlights how much has changed for technology startups in the past year, as rising interest rates, economic uncertainty and the collapse of Silicon Valley Bank have made investors more selective and funding harder to get.

Check Point has been on a buying spree of Israeli cybersecurity startups, acquiring seven in the last four years. It said Perimeter 81 will help it expand its cloud network security.

There has been a recent spate of deals for cybersecurity startups that were founded in Israel. On Tuesday, Microsoft Corp.-backed Rubrik said it would acquire cloud security firm Laminar, without disclosing a price. In July, Thales SA agreed to buy Imperva from Thoma Bravo at a $3.6 billion enterprise value.