Wiz Acquires Gem Security, Advancing CDR Capabilities

Wiz said it's making a "huge" channel push.

Edward Gately, Senior News Editor

April 10, 2024

3 Min Read
Gem Security acquired by Wiz

Wiz has acquired Gem Security, a cloud detection and response (CDR) provider. This is its second acquisition since its inception in 2020.

With a valuation of $10 billion and $900 million raised to date, Wiz plans to add to its cloud-native application protection platform (CNAPP) with Gem Security’s technology. The acquisition advances Wiz’s CDR capabilities.

Wiz didn’t say how much it paid for Gem Security.

Bill Masturzo, Wiz’s regional vice president of cloud strategy, said his company is making a “huge” channel push.

Wiz's Bill Masturzo

“And today’s Gem news underscores the increased opportunity partners have to add value,” he said. “Gem has a world-class detection and response offering that — like Wiz — is truly built for the cloud era. That is our competitive differentiator, and together with our partners we can now transform security operations the way that Wiz has already transformed CNAPP."

What Gem Security Offers

Founded in 2022, Gem Security transforms how organizations approach detection and response in the cloud with a real-time CDR solution that shortens the time to investigate and contain cloud-native threats. The company’s technology centralizes real-time visibility into multicloud environments and provides automated incident timelines to understand the root causes of cloud breaches.

Related:Latest Channel M&A: Cisco, Nitel, ScanSource, CrowdStrike

To date, Gem Security has raised $34 million from Team8, Notable Capital (formerly GGV Capital), IBM Ventures, Cisco Investments and Silicon Valley CISO Investments (SVCI).

Gem Security employees will join Wiz, and the company’s co-founders will be part of the Wiz executive team.

Wiz Reports Fast Growth

Wiz’s first acquisition was Raftt, a cloud-based developer collaboration platform, in December. Wiz recently announced it has reached $350 million in annual recurring revenue (ARR), with over 40% of the Fortune 100 as customers. It’s now targeting $1 billion in revenue, ahead of a potential Wall Street IPO.

Wiz's Assaf Rappaport

“Consolidation is the future of the security industry," said Assaf Rappaport, Wiz’s CEO and co-founder. “The acquisition of Gem brings the industry’s leading CDR to Wiz. Coupled with our CNAPP, which customers have ranked No. 1, we’re creating a powerful real-time solution for security operations center (SOC) and cyber defense teams to combat emerging threats and building the world’s leading cloud security platform.”

“Since our inception two years ago, Gem has been revolutionizing the way organizations approach security operations in the cloud,” said Arie Zilberstein, Gem Security’s CEO and co-founder. “Together with Wiz, we’re thrilled to deliver even more value to security operations teams around the world as part of Wiz’s ... platform. We look forward to joining the team and embarking on a new chapter of Gem’s growth journey with Wiz.”

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About the Author(s)

Edward Gately

Senior News Editor, Channel Futures

As news editor, Edward Gately covers cybersecurity, new channel programs and program changes, M&A and other IT channel trends. Prior to Informa, he spent 26 years as a newspaper journalist in Texas, Louisiana and Arizona.

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