According to preliminary information, cloud cybersecurity startup Wiz Inc will acquire Gem Security.

The media, citing insiders, reported that the value of the mentioned deal would be $350 million in cash. Wiz, based in New York, did not provide any specific comments about the acquisition of Gem Security as part of a response to a request from journalists. However, representatives of the company noted that these are exciting times for the brand.

Gem Security, which has offices in Tel Aviv and New York, provides customers with a centralized approach to dealing with threats in the cloud. The company guarantees a high level of incident readiness, real-time threat detection, timely response, and investigation.

In a statement from Wiz regarding the information released to the media, it is noted that the firm cannot discuss specific processes until their official completion. Separately, it is noted that the company has unique opportunities to explore mergers and acquisitions that expand its technology offerings to customers. The statement notes that Wiz has $900 million in cash and $350 million in annual recurring revenue.

Media insiders who reported on the acquisition of Gem Security used the right of anonymity since the company does not discuss this issue in the public space. At the same time, they noted that Wiz has enough funds to implement the deal without raising additional financial resources.

The media reported on the intention of the mentioned company to raise $800 million with a valuation of more than $10 billion. Then a representative of Wiz denied this information, saying the firm has no such plans.

The specified company was founded in 2020. Since then, Wiz has raised over $900 million from investors, including Lightspeed Venture Partners and Greenoaks Capital Partners. In December, the company acquired the Raft cloud platform based in Tel Aviv. The cost of this deal was $50 million.

Gem Security has raised $34 million since 2022. Currently, the number of employees of the company is 70 people. Insiders report that after the firm is acquired by Wiz, three of its co-founders will join the executive team of the new owner.

Over the past year, many deals have been implemented to acquire Israeli companies in the cybersecurity area. Palo Alto Networks Inc. became the owner of Dig Security and Talon Cyber Security startups for an estimated combined $1 billion. Check Point Software Technologies Ltd. acquired the cloud security company Perimeter 81 for $490 million and several other firms.

It is worth noting that the issue of cybersecurity is currently particularly relevant. This circumstance is because the process of rapid development of advanced technologies is nowadays underway. Scammers have access to these innovations. Cybercriminals’ schemes of action are becoming more sophisticated. Against the background of the current technological reality, consumer awareness is important to ensure safety. For example, anyone can enter a query in the Internet search system such as how to know if my camera is hacked to find out about signs of unauthorized access to a personal device.