Israeli cloud security company Wiz has signed a letter of intent to acquire US cloud security startup Lacework, sources close to the negotiations have told "TechCrunch." According to those sources Wiz will pay just $150-200 million for the US company, which was given a valuation of $8.3 billion, post-money in its last financing round.
The sources told "TechCrunch" that although the letter of intent had been signed, "The acquisition is not yet completed and the deal could still fall through."
While neither denying or confirming the report, Wiz told "TechCrunch," "Wiz has experienced unprecedented organic growth since its inception, and we are dedicated to pushing this growth even further. Simultaneously, we recognize that consolidation is the future of the security industry and therefore are actively engaged in discussions with companies across the industry. We are always exploring compelling M&A opportunities that will enhance both our technological capabilities and business expansion, as we strive to build the world’s leading cloud security platform."
Earlier this month, Wiz announced the acquisition of Israeli cybersecurity company Gem Security for $350 million.
"TechCrunch" reported that both Wiz and Lacework operate in the wider area of cloud security, but sources say, "There is relatively little competitive overlap between the two companies, so it would likely be a technology-plus-talent-plus-customer acquisition play."
Wiz was founded in 2020 by, CEO Assaf Rappaport, Ami Luttwak, Roy Reznik, and Yinon Costica. To date the company has raised $900 million at a valuation of $10 billion in its most recent financing round last year. The company has 900 employees in the US, Israel, Europe, and Asia and Wiz says it plans hiring 400 additional employees this year, including in Israel.
Wiz technology allows security and development teams to identify, prioritize and prevent risks in the cloud. The technology scans the cloud environment by interfacing with an API, and provides an in-depth analysis of the resources in the cloud, including the network structure, as well as access permissions and configuration errors that could provide an opening for attackers. The platform also scans the application and software layer and identifies weaknesses and vulnerabilities. Wiz's platform actually combines all the findings into one clear picture of the most essential risks in the cloud, by calculating hundreds of different risks and the relationships between them.
Published by Globes, Israel business news - en.globes.co.il - on April 19, 2024.
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