Wiz Acquires Dazz: Wiz, a prominent name in cybersecurity, has announced its acquisition of Dazz, a company specializing in security remediation and risk management, in a cash-and-share deal valued at $450 million. This move expands Wiz’s cloud security offerings, particularly in developer-focused solutions, and marks its most significant acquisition to date.
The Deal
The acquisition price exceeds Dazz’s last valuation of just under $400 million, achieved during its $50 million funding round earlier this year. With this purchase, Wiz strengthens its capabilities in remediation and posture management — two critical areas in cybersecurity that the company aims to enhance.
“Dazz is the leader in this market, with the best talent and the best customers, and it’s a great culture fit,” said Assaf Rappaport, CEO of Wiz.
Enhancing Cybersecurity Services
Remediation and posture management are vital for organizations aiming to secure their networks:
- Remediation helps organizations identify and resolve vulnerabilities efficiently, addressing the deluge of alerts enterprises often face.
- Posture management provides a preemptive approach by giving businesses insights into their network’s structure and security needs.
Dazz will continue operating independently while integrating into Wiz’s broader platform, maintaining Wiz’s reputation as a “one-stop-shop” for cybersecurity solutions.
Rappaport emphasized that Wiz prioritizes seamless integration over fragmented solutions, stating, “In the security industry, there are a lot of Frankenstein mashups, where companies prioritize revenue over building one technology stack that actually works as a platform.”
A History of Collaboration
The deal reflects a longstanding partnership between the two companies. Merav Bahat, Dazz’s co-founder and CEO, previously worked closely with Rappaport at Microsoft, where they collaborated after Microsoft acquired Rappaport’s prior startup, Adallom. This professional connection deepened into a friendship, with Rappaport even investing in Dazz during its early stages.
The acquisition was finalized amidst personal challenges for both leaders, with Bahat’s mother and Rappaport’s dog, Mika (Wiz’s beloved “Chief Dog Officer”), passing away during negotiations. “We’re hoping for a new chapter of positivity here,” Bahat said.
Wiz’s Growing Ambitions
The acquisition is part of Wiz’s broader strategy to dominate the cybersecurity space. Earlier this year, Wiz raised $1 billion specifically for mergers and acquisitions and has already acquired Gem Security for $350 million. Rappaport noted that 2024 could see even more acquisitions as the company builds on its momentum.
Wiz’s annual recurring revenue (ARR) currently stands at $500 million, with plans to double that to $1 billion within the next year. The company already serves over 45% of the Fortune 100, solidifying its position as a leader in cloud security.
The Bigger Picture
Cloud adoption has transformed how businesses operate but has also introduced complex security challenges, including expanded attack surfaces and vulnerabilities exacerbated by AI-powered threats. Wiz’s platform ingests data from providers like AWS, Azure, and Google Cloud, scanning applications and networks for risks. With Dazz’s expertise in remediation and attack surface posture management, Wiz now offers a more comprehensive solution.
“We now have a platform that can give a 360-degree view of risk, covering infrastructure and application,” said Ami Luttwak, co-founder of Wiz.
Competitive Landscape
Dazz’s competitors, such as Cyera, are also making moves. Cyera recently secured $300 million in funding at a $5 billion valuation, with plans to make acquisitions of its own. However, Dazz’s integration into Wiz’s platform may provide a competitive edge, combining innovation with streamlined solutions.
Looking Ahead
As the cybersecurity landscape evolves, Wiz continues to position itself as a market leader. By aligning with Dazz’s capabilities and leveraging its rapid growth (500% year-over-year), Wiz is poised to offer unparalleled solutions to its customers.
This acquisition not only cements Wiz’s reputation for innovation but also highlights the importance of collaboration and integration in addressing the complex security challenges of the digital age.
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