Cloud security software company Wiz has acquired Palo Alto-based unified security remediation and application security posture management (ASPM) startup Dazz. Reportedly valued at approximately $450m, the deal consists primarily of a cash component, with a portion paid in shares.
Established in 2021, Dazz is engaged in modernising conventional vulnerability and risk management. Leveraging AI, automation, and root-cause analysis, Dazz claims its platform can aid organisations in addressing vulnerabilities in hours rather than weeks. The company grew rapidly this year, boasting a 500% year-on-year increase in annual recurring revenue (ARR) and over eight billion vulnerabilities managed.
“With cloud and AI adoption soaring and attacks accelerating, there is no better time to join forces and commit ourselves anew to helping address cloud risks at the source so that customers get access to the best security platform the world has ever seen,” said Dazz co-founder and CEO Merav Bahat.
Wiz’s consolidation of cybersecurity capabilities
This acquisition builds on the September launch of Wiz Code, a product designed to trace cloud security issues to their origins in the code. By integrating Dazz’s capabilities, Wiz aims to extend its platform with AI-driven prioritisation and remediation capabilities.
Wiz’s deal with the Palo Alto-based firm comes after its acquisitions of cloud-based developer collaboration tool Raftt, and cloud detection and response firm Gem Security. This reflects Wiz’s strategy to enhance its cloud-native application protection platform (CNAPP) and establish a comprehensive solution for risk detection, prioritisation, and remediation.
“In today’s world, organisations must connect risks across the entire application lifecycle—from code to cloud and on-prem infrastructure. They need tools that prioritize issues with precision and make collaboration effortless,” said Wiz CEO Assaf Rappaport. “Dazz delivers on this need, simplifying remediation and empowering teams to act quickly and decisively.”
The cloud security software company has raised $1.9bn in funding and is said to have more than $500m in ARR. In September, Bloomberg News reported that the company is evaluating the sale of existing shares, with an estimated valuation between $15bn and $20bn. The potential sale would allow current shareholders to divest stakes valued between $500m and $700m. Sources familiar with the matter indicated that prominent venture firms, including G Squared, Lightspeed Venture Partners, and Thrive Capital, are involved in the discussions.
Wiz’s growth trajectory remains on track, despite previous acquisition discussions with Google ending in July. The proposed $23bn deal, which would have been Google’s largest acquisition to date, eventually fell apart for unspecified reasons. Following these negotiations, the cybersecurity firm pivoted to preparing for a potential initial public offering (IPO), with its CEO Rappaport reiterating the company’s ambition to surpass $1bn in recurring annual revenue.
Read more: Google’s $23bn deal to buy Wiz abruptly cancelled
