Cloud Security Startup Wiz Reportedly Eyeing SentinelOne Acquisition

Wiz, a cloud security startup, reportedly is interested in acquiring SentinelOne, a publicly traded cybersecurity provider worth more than $4.8 billion.

According to Reuters, Wiz is considering a potential bid for SentinelOne after the company started exploring strategic options. Earlier, people familiar with the matter told Reuters SentinelOne was considering its options, including a sale. It reportedly has hired investment bank Qatalyst Partners to advise on discussions with potential acquirers. That includes private equity firms.

Wiz sent us the following statement:

“Wiz has openly discussed the possibility of acquisition, and we consistently evaluate potential opportunities that will support our business growth and help us maintain our market leadership position. SentinelOne has a strong cybersecurity offering, and we have been following their growth journey for the past several years.”

SentinelOne didn’t respond to requests for comment.

Omdia’s Eric Parizo

Eric Parizo, managing principal analyst at Omdia, which shares a parent company with Channel Futures (Informa), said from the SentinelOne side, a Wiz acquisition “would certainly make sense.”

“Wiz has been a fast-growing vendor in the cloud security realm, while SentinelOne, despite solid technology and a loyal customer base, has struggled to meet growth expectations beyond its core endpoint security capabilities,” he said. “The combination would give SentinelOne’s customers certainty for the future, and would enable Wiz to evolve into a top-tier cybersecurity platform vendor with strong coverage of endpoint and cloud, setting the stage for further growth opportunities.”

SentinelOne One of Fastest-Growing North American Companies

Last November, SentinelOne was named one of the fastest-growing companies in North America by Deloitte Technology Fast 500 for the fourth consecutive year.

In summer 2021, SentinelOne became a public company traded on the New York Stock Exchange. For the first quarter of its fiscal year 2024, SentinelOne reported a 70% increase in total revenue to $133.4 million, compared to $78.3 million for the year-ago quarter. However, it reported a $107 million loss, compared to a $90 million loss for the year-ago quarter.

In February, Wiz raised $300 million in new funding and achieved $10 billion in valuation. Since its inception, the cloud security provider has raised $900 million from investors.

More than 10,000 organizations use SentinelOne’s products and solutions to secure their endpoints, cloud workloads, containers, identities and mobile and network-connected devices, the company said. SentinelOne also offers a partner program and continues to explore partnership opportunities with MSSPs, MSPs and other technology providers.