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US-Israeli Wiz Considers Acquisition of SentinelOne

The spokesperson mentioned, “We're always on the lookout for opportunities to further our growth and solidify our industry-leading position. SentinelOne's robust cybersecurity offerings have caught our attention, and we've been monitoring their progress over the years.”

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Sara Montes de Oca
AUG 29, 2023 · 04:14 AM ET · 2 MIN READ
Editorial

The spokesperson mentioned, “We're always on the lookout for opportunities to further our growth and solidify our industry-leading position. SentinelOne's robust cybersecurity offerings have caught our attention, and we've been monitoring their progress over the years.”

SentinelOne's discussions about a potential sale are in the early stages. The company, currently valued at approximately $4.8 billion on the New York Stock Exchange, is exploring strategic avenues, including the possibility of a sale. As reported by Reuters, Qatalyst Partners, an investment bank, has been roped in to guide the discussions with prospective buyers, such as private equity firms.

SentinelOne's stock has seen a decline of over 40% from its initial trading value of $35 per share in 2021, currently hovering around $16. Founded in 2013, SentinelOne specializes in AI-driven software that safeguards laptops and mobile phones against security threats by detecting unusual activity within corporate networks. The company, headquartered in Mountain View, California, was initiated by Israeli entrepreneurs Tomer Weingarten and Almog Cohen.

On the other hand, Wiz's pioneering technology promises comprehensive cloud security in mere minutes, aiming for swift threat mitigation. The company, started in the early phases of 2020 by Assaf Rappaport, Yinon Costica, Ami Luttwak, and Roy Reznik (the original founders of Adallom), now boasts a valuation of an impressive $10 billion after a recent $300 million funding round.

Initiated amidst the initial stages of the COVID-19 pandemic, Wiz, with its headquarters in New York, employs 650 individuals, 150 of whom are based in Israel. To date, the company has accumulated $900 million in investments from entities like Sequoia Capital, Insight Partners, Blackstone, G Squared, and prominent private investors including Bernard Arnault and Howard Schultz, the founder of Starbucks.

Earlier in March, a collaboration between Wiz and SentinelOne materialized, aiming to deliver holistic cloud security solutions for businesses. Both companies highlighted their combined strength in providing clients comprehensive cloud security insights and preventive measures.

This potential transaction underscores the current trend of Israeli cyber startups being acquired by tech majors, driven by the increasing security demands of enterprises against the backdrop of a tech funding crunch. Notable recent deals involve Check Point Software Technologies acquiring startup Perimeter 81, Rubrik purchasing Laminar, and Cisco Systems announcing its intention to buy Lightspin Technologies, among others.

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━ ABOUT THE REPORTER
Sara Montes de Oca

Sara Montes de Oca is the Editor in Chief of TechEchelon. Previously a correspondent and producer in Washington, D.C., covering business, finance, and politics.

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