Wiz team.

Wiz deal to acquire Lacework collapses

The companies recently signed a Letter of Intent with the aim of completing a deal for around $150-200 million. However, negotiations fell through in the due diligence process. Lacework was valued at $8.3 billion in 2021

Cloud security decacorn Wiz will not acquire American cloud security company Lacework, Calcalist has learned. The companies recently signed a Letter of Intent, but the deal fell through during the comprehensive due diligence process. The transaction was valued at approximately $150-200 million, with Lacework’s $800 million in cash reserves to have been distributed among the company's investors.
The American company was established in 2015 and is considered a veteran company in the field of cloud security. The company raised about $1.9 billion to date, and in its last fundraising round, held in 2021, it received $1.3 billion at an $8.3 billion valuation. According to reports, Lacework’s annual recurring revenue is estimated at about $100 million. Besides Wiz, other cyber companies are believed to be interested in purchasing Lacework, including Palo Alto Networks.
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Wiz team
Wiz team
Wiz team.
(Photo: Avishag Shaar-Yashuv)
Wiz recently completed the purchase of Israeli startup Gem Security for about $350 million.
Founded in 2022, Gem developed a real-time CDR (Cloud Detection and Response) solution that shortens the time to investigate and contain cloud-native threats.
That was Wiz's second acquisition since its inception in 2020, after the company acquired Israeli startup Raftt, a cloud-based developer collaboration platform, last December.
Wiz recently announced that it has reached $350 million in ARR, with over 40% of the Fortune 100 as customers. The company previously expressed interest in pursuing M&A opportunities as part of its mission to build a holistic cloud security platform catering to a wide array of industry needs. Wiz is now targeting $1 billion in revenue, ahead of a potential Wall Street IPO.