Wiz in talks to acquire Lacework for $150M-$200M cybersecurity deal

TLDR:

Israeli cloud security firm Wiz Inc. is reportedly in talks to acquire rival cloud security startup Lacework Inc. for about $150 million to $200 million, far lower than the valuation of $8.3 billion. The deal, if completed, will see Lacework’s $800 million in cash reserves distributed among the company’s investors.

In 2015, Lacework was founded and offers a cloud-native application protection platform that delivers threat detection, behavioral anomaly detection, and cloud compliance across multicloud environments. Lacework had raised $1.9 billion in funding from various investors before being put on the market. The acquisition is seen as a sign of market consolidation, as the two companies were in competition with each other.

The acquisition is strange given Lacework’s reported annual recurring revenue of $100 million, but it may lead to Wiz gaining Lacework’s 600 customers. Wiz has been actively acquiring other cybersecurity firms recently. The deal with Lacework highlights the competitive landscape in the cybersecurity sector and the ongoing market shifts in the industry.