$10 Billion Security Startup Wiz in Talks to Acquire Lacework for $200 Million
Cybersecurity startup Wiz is in advanced talks to acquire Lacework, one of its largest private competitors, according to two people with direct knowledge of the talks. The deal values Lacework at between $150 million and $200 million, according to one of the people, a sharp decline from the company’s 2021 valuation of $8.3 billion.
The talks come as small cybersecurity firms offering individual products are facing a tougher competitive environment, as customers shift to bigger companies offering suites of products. The deal isn't done and could still fall apart, however.
Wiz, which was founded in 2020, was last valued at $10 billion in 2023 from investors including Lightspeed Venture Partners, Greenoaks Capital Partners and Index Ventures. It had a run rate of $200 million as of last year, according to someone familiar with the matter.
In a statement, a Wiz spokesperson said that the company is “always exploring compelling M&A opportunities." A spokesperson for Laceworks couldn't immediately be reached for comment.
Laceworks is the company’s closest rival. Founded in 2015, it was valued at $8.3 billion in 2021 from investors including Sutter Hill Ventures, Altimeter Capital and Tiger Global Management. The company cut staff in 2022, citing a plan to increase runway and strengthen the firm’s balance sheet.