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.
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.
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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.
