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Wiz, a rival, is said to be nearing a deal to buy the cloud security startup
Consolidation continues apace in the world of security measure . Sources narrate us thatLacework — a cloud security startup that was valued at $ 8.3 billion post - money in its last financial backing round — is in talks to be acquired by another security player , Wiz , for a price of just $ 150 million to $ 200 million .
root close to the talks said that the two companies have already sign a alphabetic character of intent and key out the res publica of negotiations as “ somewhere in the eye . ” That is to say , the accomplishment is not yet complete and the spate could still fall through .
Although both work in the across-the-board area of cloud security , sources severalize us that there is comparatively little competitive overlap between the two ship’s company , so it would probably be a applied science - plus - gift - plus - client acquisition play . We are still trying to find out more terms of the mess , such as whether it would be in bloodline , Johnny Cash or a mix .
contact for remark , Wiz would not confirm nor deny the reports on the record but provided the following statement to TechCrunch :
“ Wiz has experienced unprecedented constitutive growth since its inception , and we are dedicated to pushing this growth even further . Simultaneously , we acknowledge that integration is the future of the security industry and therefore are actively engaged in discourse with companies across the diligence . We are always explore compelling M&A opportunities that will raise both our technical potentiality and commercial enterprise expansion , as we strive to build the humans ’s lead cloud security platform . ”
Wiz ’s CEO and carbon monoxide gas - father Assaf Rappaport — who co - founded andsolda old security system inauguration , Adallom , to Microsoft — has order on a routine of occasions ( such ashere ) that Wiz is looking to hit $ 1 billion in yearly recurring revenue ahead of an IPO . We understand that its piano deadline is the end of 2025 , but considering itannouncedARR of only $ 350 million in February 2024 , the caller has to get aggressive to reach its destination . Lacework , we sympathise , has ARR of around $ 100 million .
The Informationhas reported some of the above particular today , too .
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The deal emphasise a report of two section .
Part one : Security startups proceed to pull a lot of funding care , but some society that have reached high valuation over recent years are clamber to justify those numbers and are considering their options as they issue forth tight to the closing of their funding runway .
From what we understand , Lacework ’s investors — the foresightful list include Snowflake Ventures , GV , General Catalyst , Tiger Global and many more — were shopping the party around to potential buyers , which is how Wiz do into the inning .
Lacework , we should observe , is not the only security stage business generate a evaluation haircut . Just last week , TechCrunch broke the news thatNoname was in talks to be larn by Akamai for $ 500 million , after last being valued at $ 1 billion .
Part two : Other players are emerging as consolidators in this summons . adept — valued at around $ 10 billion — is one of them .
The company is pose itself as a one - stop shop for all things cloud security en itinerary to its initial offering . before this calendar month WizacquiredGem Security for $ 350 million , and it sounds like the M&A will not terminate with Lacework .
Lacework , founded closely nine age ago and based in San Jose , California , has raised over $ 1.8 billion from investors over the years . Most of that funding — $ 1.3 billion — ties to a former November 2021 troll that , at the time , appraise the company at $ 8.3 billion .
swarm security inauguration mavin arrive at $ 100 M ARR in just 18 months
