The Israeli cyber unicorn announced today the acquisition of Gem Security, a young cloud security startup, for $350 million in cash. This is one of the largest purchase deals signed between Israeli startups.
Gem Security has developed an advanced cloud security system that detects in advance threats to the organization’s infrastructure and provides a quick response to incidents. The system interfaces with all the leading cloud providers (AWS, Azure, GCP and Kubernetes) and allows you to get a snapshot and assessment of attack readiness within minutes, as well as recommendations to improve coverage. In addition, the system is based on analyzes of attack tactics, techniques and methods (TTPs), statistical and behavioral analysis, to produce a smart and efficient prioritization of alerts, while avoiding unnecessary “noise” for the organization.
For Wiz, this acquisition is another step in its aggressive growth goals. The company is sitting on hundreds of millions of dollars in cash, and recently reported $350 million in annual recurring revenue (ARR). In addition, it was announced that Wiz is trying to raise an additional 800 million dollars according to a valuation “higher than 10 billion dollars” – its valuation in the last fundraising round.
The trend of mergers and acquisitions in the Israeli cyber sector
The new transaction emphasizes the prominent trend of mergers and acquisitions in the last two years in the Israeli cyber sector. Just last year, Dig and Talon were acquired by Palo Alto Networks for a combined $1 billion; Check Point acquired Perimeter 81 for an estimated amount of over $400 million; And the American cyber giant Crowdstrike purchased the Israeli Flow for an amount estimated at 150 million dollars.
Effects of the purchase
The acquisition of Gem Security will allow Wiz to strengthen its position as a leader in cloud security. Gem Security’s advanced system will integrate with existing Wiz solutions and provide the company’s customers with more comprehensive and advanced protection against threats.
Comments
Assaf Rapaport, CEO of Wiz: “We are excited to add Gem Security to the Wiz family. Gem Security’s advanced system and its talented team will help us strengthen our position as a leader in cloud security and provide our customers with more comprehensive and advanced protection against threats.”
Aryeh Zilberstein, CEO of Gem Security: “We are happy to join Wiz, a leading and groundbreaking cloud security company. We believe that the combination of forces between us will lead to the creation of even more innovative and advanced cloud security solutions.”
