While Microsoft fights the government over the nationality of Cloud-stored data on one front, it is bolstering the security of its Cloud offerings on another.

We reported about this acquisition in July, but Microsoft today has confirmed that it has acquired security firm, Adallom, with intent to complement its current solutions in Office 365, Enterprise Mobility Suite and the recently announced Microsoft Advanced Threat Analytics.

Adallom, headquartered in Menlo Park, California and founded in 2012, is the producer of security-as-a-service. Founded by former members of the Israeli Intelligence Corps, Adallom was named as one of the 10 Coolest Security Startups in 2013 by CRN. I’m sure Microsoft was aware of Adallom prior to 2013, but in December of that year Adallom was the security company that discovered and reported on a token hijacking vulnerability in Office 365.

The transaction is reported to be $320 million.

Microsoft blog: Microsoft acquires Adallom to advance identity and security in the cloud

Adallom blog: Big News From Adallom and Microsoft