American-Israeli payroll unicorn Deel, the developer of a payroll and HR platform, said Monday it agreed to buy Tel Aviv deepfake detection startup Clarity to help businesses tackle the AI-driven security threat posed by fake job candidates.

No financial terms were disclosed, although sources put the price tag at around $45 million to $50 million. The deal marks Deel’s 15th acquisition and its first in Israel.

Founded at the end of 2022 by CEO Michael Matias, CTO Natalie Fridman and CSO Gil Avriel, with R&D headquarters in Tel Aviv, Clarity has developed software to detect and protect against deepfakes, to help businesses ensure that the individuals they hire are genuinely who they claim to be, and to prevent bad actors from gaining employment and access to sensitive systems.

In the aftermath of the October 7, 2023, onslaught, when Hamas terrorists rampaged through southern Israel, killing around 1,200 people and taking many hostages, Clarity worked with the Israeli government to authenticate sensitive video footage. AI researchers at Clarity helped verify the authenticity of war footage and testimonials of hostages from the assault, as a flurry of videos and images circulated on social media platforms, some shot by Hamas terrorists, some by Gaza residents, and some created by generative AI tools for manipulation and deception purposes.

To date, Clarity has raised $16 million from investors, including Walden Catalyst Ventures and Bessemer Venture Partners, with participation from Fusion, Secret Chord Ventures, Ascend Ventures, and Flying Fish Partners.

As part of the acquisition, Clarity’s proprietary AI technology and engineering team will join Deel, to build........

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