Israeli Wiz company (Wiz) acquires the Israeli start-up Gem Security for 350 million dollars

The Israeli Wiz company (Wiz) acquires the Israeli start-up Gem Security (Gem Security) for 350 million dollars. The purchase was first reported by the Bloomberg website and is expected to be a cash-only transaction. This is one of the largest acquisition deals in which an Israeli startup acquires an Israeli startup, after the giant Clarotti purchases Medigate for $400 million in 2021.
According to PitchBook, Gem Security has raised $34 million since its inception in 2022. Gem Security was founded by CEO Aryeh Zilberstein, VP of Technology Ron Konigsberg, and Ofir Bruckner, VP of Product. The three met during their service in Unit 8200. Silberstein and Bruckner worked together at Signia, which was sold to the Temasek Foundation, while Konigsberg served as chief architect at Singular. The company was established in the incubator of Team8 companies.
Wiz, founded by Adalum and Microsoft alumni and managed by Assaf Rapaport, has announced fundraising in the amount of about $800 million to date, when its value in the last round was $10 billion. The company is currently in negotiations to raise hundreds of millions of additional dollars. The two companies Wiz and Gem deal in the world of cloud security. According to Bloomberg, Wiz is expected to finance the purchase from cash without raising additional capital. The company recently reported that it reached an annual revenue rate of 350 million dollars.
According to Wiz: "The cyber security arena is undergoing a significant transformation that prevents a continuous transition to cloud environments and there is a growing understanding that effective collaboration between development and security teams is the key to success. Cloud environments require taking an approach of consolidation and defining the cloud as the primary environment of the computing infrastructure, where development and security work together effectively to Proactively address vulnerabilities and threats. When an information security manager manages an average of 75 security tools in a large organization, the need for this integration is more urgent than ever."