Report: Cloud Security Startup Wiz Eyeing Acquisition of SentinelOne

Cloud cybersecurity startup Wiz is contemplating a potential bid to acquire cybersecurity firm SentinelOne.

This move would mark a significant departure from the norm for a startup, as it involves acquiring a listed company with a market valuation of nearly $4.9 billion, Bloomberg reported Friday (Aug. 25).

Reached by PYMNTS, a spokesperson for Wiz provided an emailed 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,” the spokesperson said. “SentinelOne has a strong cybersecurity offering, and we have been following their growth journey for the past several years.”

Based in New York, Wiz has already initiated discussions with bankers to explore the possibility of acquiring SentinelOne, although no official hiring of a bank has taken place yet, according to the Bloomberg report.

One of the banks Wiz has engaged with has suggested seeking a partner to support this potential deal, the report said.

However, there are several hurdles that Wiz would need to overcome in order to successfully acquire SentinelOne, per the report. As the discussions are still in the early stages, it remains unclear whether Wiz would consider merging operations and taking the combined entity public through a reverse initial public offering (IPO).

Nevertheless, the news of Wiz’s interest in SentinelOne has already caused a surge of as much as 9.1% in the latter’s shares, according to the report.

Depending on the type of buyer, any private or public deal for SentinelOne could be valued between $6 billion and $8 billion, the Bloomberg report said.

Wiz, which achieved a valuation of $10 billion earlier this year, has successfully raised over $900 million since its establishment in 2020, according to the report. The cloud cybersecurity startup said that more than a third of Fortune 100 companies now rely on its services.

This report comes at a time when hackers are increasingly employing “supply chain attacks” that give them access to multiple targets. Tom Hegel, senior threat researcher at SentinelOne, told Reuters in July that in these hacks, cybercriminals compromise software or service providers to steal data or money from users downstream.