Wiz completes $350 million acquisition of Gem Security to expand CDR offering
Wiz completes $350 million acquisition of Gem Security to expand CDR offering
The decacorn is acquiring its fellow Israeli company which has developed a Cloud Detection and Response platform and raised $34 million since its founding in 2022
Israeli cloud security decacorn Wiz has announced the acquisition of fellow Israeli startup Gem Security. The valuation of the deal was not disclosed, but is estimated at $350 million in cash. With a valuation of $10 billion and $900 million raised to date, Wiz aims to add to its Cloud Native Application Protection Platform (CNAPP) with Gem's technology. The negotiations between the companies were revealed last month.
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. In contrast to static industry solutions lacking real-time monitoring capabilities, the company’s technology centralizes real-time visibility into multi-cloud environments and provides automated incident timelines to understand the root causes of cloud breaches. Gem has raised $34 million to date from Team8, Notable Capital (formerly GGV Capital), IBM Ventures, Cisco Investments and Silicon Valley CISO Investments (SVCI). Gem's employees will be joining Wiz, and the company's co-founders, CEO Arie Zilberstein, CTO Ron Konigsberg, and VP Product Ofir Brukner, will join the Wiz executive team.
This is 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.
“Consolidation is the future of the security industry. With cloud infrastructure growing at an accelerated pace, not to mention the broad adoption of AI applications, the world’s largest organizations require consolidated, cloud-native security platforms to effectively address a wide and ever-changing range of security needs,” said Assaf Rappaport, Co-Founder and CEO of Wiz. “The acquisition of Gem brings the industry’s leading CDR to Wiz. Coupled with our CNAPP, which customers have ranked number one, we’re creating a powerful real-time solution for SOC and Cyber Defense teams to combat emerging threats and building the world’s leading cloud security platform.”
“Since our inception two years ago, Gem has been revolutionizing the way organizations approach security operations in the cloud,” said Arie Zilberstein, Co-Founder and CEO of Gem Security. “Together with Wiz, we're thrilled to deliver even more value to security operations teams around the world as part of Wiz's industry-leading platform. We look forward to joining the team and embarking on a new chapter of Gem's growth journey with Wiz.”
