The CEO of cloud safety firm Wizz, which is reportedly in superior acquisition talks with Alphabet, on Monday supplied his opinion on attainable upcoming consolidation within the cybersecurity market.
Wizz CEO and co-founder Assaf Rapaport repeatedly declined to touch upon whether or not his firm is in talks with Alphabet a few potential $23 billion acquisition, however mentioned the business is fragmented and M&A is just simply beginning to ramp up.
“First of all, I feel we’re simply beginning to see consolidation within the safety market,” Rapaport mentioned in an interview, talking at Fortune’s Brainstorm Tech Conference in Deer Valley, Utah, noting that it is really safer for corporations to consolidate all their safety measures onto one platform.
“The cybersecurity market is so fragmented, you are going to see quite a lot of consolidation,” Rapaport mentioned of the market.
Rapaport additionally mentioned market traits are altering and founders are open to contemplating exit methods aside from an IPO.
Rapaport mentioned Wizz raised an enormous $1 billion spherical earlier this yr at a $12 billion valuation as a result of the corporate was on the lookout for alternatives to accumulate itself. Rapaport credited the corporate’s development to the 2020 coronavirus pandemic and the best way corporations moved their operations on-line and to the cloud, benefiting corporations specializing in defending the info saved there. “It felt just like the worst time to start out an organization,” he mentioned. “Looking again, it wasn’t.”
But Rapaport additionally mentioned he hopes to develop in a extra managed method. “Fast is nice, however I desire predictability and understanding the place I’m going,” Rapaport mentioned onstage.
The Wall Street Journal reported Sunday that Alphabet is “in superior negotiations” to purchase the New York City-based cybersecurity startup for about $23 billion. If the deal goes by means of, it might be Alphabet’s largest acquisition ever and one of many few large M&A offers since 2022, when rate of interest modifications have rocked markets and considerably lowered the preliminary public providing market.
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