AdallomMicrosoft announced on Tuesday it has acquired Adallom, an Israeli startup that helps companies protect sensitive data stored in the cloud.

Rumors of the deal, which is said to be worth $320 million, first surfaced in Israeli media in July.

Adallom will keep selling its tools while the companies work to integrate its technology into Microsoft’s cloud security suite. Eventually, it will complement services available for Office 365 and Enterprise Mobility Suite, including Microsoft’s recently launched Advanced Threat Analytics.

The startup, which was founded in 2012 and now has 80 employees, offers tools that give businesses more insight into how workers are using cloud services like Salesforce, Box and Office 365. Adallom limits access to certain applications, identifies risky employee behavior and sends alerts when it detects usage anomalies that indicate data breaches.

The acquisition is just the latest example of Microsoft’s increasing willingness to look outside itself to bring new functionality to existing products. The company bought Seattle-based VoloMetrix last week to boost its “people analytics” offerings and New Jersey’s FieldOne Systems last month for its Microsoft Dynamics customer relationship management business.

“When we launched Adallom, we had a vision to make it easy to keep your data safe in the cloud,” Adallom wrote in a statement posted on its website on Tuesday. “We have delivered on that vision with visibility, governance and protection for the most popular cloud applications used by businesses worldwide and now, by joining Microsoft, we will have the opportunity to help many more customers take advantage of cloud applications without compromising security.”

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