Cloud security software company Wiz has acquired Palo Alto-based unified security processing and application security posture management (ASPM) startup Dazz. The deal is reportedly valued at approximately $450 million, and consists primarily of a cash component, with a portion paid in stock.
Founded in 2021, Dazz modernizes traditional vulnerability and risk management. By leveraging artificial intelligence, automation and root cause analysis, Dazz claims its platform can help organizations address vulnerabilities in hours rather than weeks. The company has grown rapidly this year, achieving a 500% year-over-year increase in annual recurring revenue (ARR) and managing more than eight billion vulnerabilities.
“With cloud and AI adoption on the rise and attacks accelerating, there is no better time to join forces and recommit to helping address cloud risk at the source so customers have access to the best security platform the world has ever seen,” Daz said. Co-Founder and CEO Merav Bhatt.
Wiz standardizes cybersecurity capabilities
This acquisition builds on the September launch of Wiz Code, a product designed to trace cloud security issues back to their origins in code. By integrating Dazz's capabilities, Wiz aims to expand its platform with prioritization and AI-based processing capabilities.
Wiz's deal with the Palo Alto-based company follows its acquisition of cloud developer collaboration tool Raftt and cloud detection and response company Gem Security. This reflects Wiz's strategy to enhance its Cloud Native Application Protection Platform (CNAPP) and create a comprehensive solution for detecting, prioritizing and remediating risks.
“In today’s world, organizations must connect risks across the entire application lifecycle – from code to cloud and on-premises infrastructure. They need tools that accurately prioritize issues and make collaboration easy,” said Assaf Rappaport, CEO of Wiz. Dazz addresses this need, simplifying the remediation process and enabling teams to act quickly and decisively.”
The cloud security software company has raised $1.9 billion in funding and reportedly has more than $500 million in ARR. In September, Bloomberg News reported that the company was evaluating a sale of existing shares, with an estimated valuation of between $15 billion and $20 billion. A potential sale would allow existing shareholders to sell stakes worth between $500 million and $700 million. Sources familiar with the matter indicated that prominent venture firms, including G Squared, Lightspeed Venture Partners and Thrive Capital, are participating in the discussions.
Wiz's growth trajectory remains on track, despite previous acquisition discussions with Google ending in July. The proposed $23 billion deal, which would have been Google's largest acquisition to date, ultimately fell apart for unspecified reasons. Following these negotiations, the cybersecurity company has focused on preparing for a potential initial public offering (IPO), with CEO Rappaport emphasizing the company's ambition to exceed $1 billion in annual recurring revenue.
