Cybersecurity startup Wiz has expressed its interest in a potential bid for SentinelOne (S.N), following the latter’s exploration of strategic alternatives, as reported on Friday.
The $4.9 billion SentinelOne has encountered challenges in achieving profitability, as businesses have curtailed their information technology expenditure due to economic uncertainty and persistent inflation.
Sources familiar with the matter informed Reuters earlier in the week that SentinelOne was actively considering various options, including a potential sale.
In response to these developments, Wiz’s spokesperson Rachel Ratchford conveyed that the company continually assesses opportunities to bolster its business expansion.
She underscored SentinelOne’s robust cybersecurity offerings.
To navigate these strategic moves, SentinelOne has enlisted the services of investment bank Qatalyst Partners to facilitate discussions with potential suitors, among them private equity firms, according to the aforementioned sources.
Acquiring SentinelOne would provide Wiz with a gateway into the realm of endpoint security, complemented by SentinelOne’s robust cloud and identity security solutions, according to insights from D.A. Davidson analyst Rudy Kessinger.
Notably, Wiz and SentinelOne had previously revealed an exclusive collaboration in March, aimed at delivering comprehensive cloud security solutions.
Established in Israel in 2013, SentinelOne has garnered a clientele exceeding 10,000 customers by January 31, 2023.
This impressive roster includes prominent corporations and even the U.S. government.
As Wiz mulls over the prospect of a bid, the cybersecurity landscape could witness significant transformations, potentially reshaping the sector’s dynamics.