Cybersecurity Giant Wiz Eyes Acquisition of Israeli Cyber Firm Dazz in $500 Million Deal
Cybersecurity powerhouse Wiz is in talks to acquire Israeli cybersecurity company Dazz, led by co-founder and CEO Merav Bahat, in a deal that could be valued at over $500 million. The potential acquisition follows Dazz’s recent $50 million fundraising round in July, which placed its valuation at around $400 million. Industry insiders suggest that the deal would mark a substantial addition to Wiz’s rapidly growing portfolio and highlight the tech sector’s shift toward growth through acquisitions.
The acquisition interest comes amid Dazz’s recent and impressive 400% growth in annual recurring revenue (ARR) from 2023 to 2024, fueled by a tripled sales force and expanded operations across the U.S., Europe, and Israel. Known for its innovative unified remediation platform, Dazz offers enhanced visibility across all detection tools and environments—including code, cloud, applications, and infrastructure—enabling significant time savings and faster incident response for security teams. The platform has proven especially valuable in reducing Mean Time to Remediate (MTTR), a critical metric in cybersecurity response.
Founded by Bahat alongside CTO Tomer Schwartz and VP of R&D Yuval Ofir, Dazz has a strong leadership team with deep roots in the cybersecurity industry. Bahat, a former Deputy CEO at Microsoft’s R&D Center in Israel, was instrumental in Microsoft’s cloud security division before she left in late 2020 to start Dazz. Schwartz, who founded Microsoft’s Security Response Center in Israel, and Ofir, previously the VP of R&D at Claroty and a former commander in the elite Israeli military cyber unit 8200, bring years of experience and technical prowess to the company. Their combined expertise has helped establish Dazz as a key player in the cybersecurity space.
Dazz has raised a total of $105 million to date from top investors, including Greylock Partners, Cyberstarts, Insight Partners, and Index Ventures. With Gili Raanan’s Cyberstarts invested in both Wiz and Dazz, the acquisition signals a synergy within the cybersecurity investment ecosystem.
A Growing Trend: Acquisition-Driven Growth
The tech industry has seen a pronounced shift toward acquisition-driven growth, with major players like Wiz using strategic acquisitions to quickly add value and expand capabilities, rather than relying solely on organic growth. For fast-scaling cybersecurity companies, acquiring an established platform can be an effective way to bolster services and respond to increasing cyber threats without the time and resource investment needed to develop new tools from scratch.
In the current economic climate, tech giants are targeting promising startups to gain specialized capabilities or enter new markets. By acquiring Dazz, Wiz could not only expand its existing cybersecurity offerings but also deepen its reach in critical sectors by leveraging Dazz’s strong client relationships and advanced remediation technology. This approach allows companies like Wiz to broaden their product stack and cater to evolving client demands with minimal development delays.
The Rise of Israeli Cybersecurity Innovation
Israel’s vibrant tech ecosystem, particularly in cybersecurity, has produced a string of successful companies driven by innovative solutions and high-profile exits. Many startups have leveraged the expertise of veterans from the elite 8200 unit of the Israel Defense Forces, widely regarded as a breeding ground for cybersecurity talent. This unit’s alumni have gone on to found several successful companies, including Wiz, Claroty, and now Dazz.
If completed, the acquisition of Dazz would further solidify Wiz’s standing in the cybersecurity sector, positioning it to compete with other global cybersecurity giants while fortifying its product offerings and client reach. As cyber threats continue to evolve, acquisitions like this demonstrate how top players are consolidating expertise and tech to address these challenges at an accelerated pace.
The tech sector’s acquisition trend is expected to persist, with companies opting for rapid scaling and market expansion by integrating innovative startups. This dynamic growth-through-acquisition strategy illustrates a broader trend where companies use M&A to keep pace with technological advancements, making the cybersecurity industry one of the most acquisition-driven segments in the tech world.
Adele Simmons
Financial Desk
