Cybersecurity startup Wiz considers potential bid for SentinelOne

FILE PHOTO: The logo for SentinelOne Inc, a cybersecurity firm, is displayed on a screen during the company’s IPO at the NYSE in New York

(Reuters) -Cybersecurity startup Wiz said on Friday it is considering a potential bid for SentinelOne after the $4.9 billion company started exploring strategic options.

SentinelOne has struggled to become profitable, with clients slashing their information technology spending amid an uncertain economy and sticky inflation.

Earlier in the week, people familiar with the matter told Reuters SentinelOne was exploring options that could include a sale.

"We consistently evaluate potential opportunities that will support our business growth... SentinelOne has a strong cybersecurity offering," Wiz's spokesperson Rachel Ratchford told Reuters.

SentinelOne has hired investment bank Qatalyst Partners to advise on discussions with potential acquirers, including private equity firms, the sources had said.

"The deal (to acquire SentinelOne) would broaden Wiz's platform into endpoint security and bring strong cloud and identity security solutions from SentinelOne," D.A. Davidson analyst Rudy Kessinger said.

Wiz and SentinelOne in March had announced an exclusive partnership to deliver end-to-end cloud security.

SentinelOne, which was launched in Israel in 2013, has more than 10,000 customers as of January 31, 2023, which include major companies and the U.S. government.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Krishna Chandra Eluri)