Israeli cloud security startup Wiz is reportedly considering a bid for NYSE-listed cybersecurity company SentinelOne, according to Bloomberg and Reuters reports.

Founded in 2020 and employing ~750 employees, privately owned, venture-backed Wiz is a smaller and younger company in comparison to SentinelOne, which, in turn, is a major cybersecurity player founded in 2013 and currently employs nearly 2,000.

Specializing in cloud network security, the acquisition would expand Wiz’s reach into endpoint protection while bolstering its existing capabilities with SentinelOne’s cloud and identity offerings.

If completed, the transaction would be one of the largest between Israeli tech companies: Wiz was valued at USD 10 billion during its last funding round, while SentinelOne currently trades at a market capitalization of ~USD 4.9 billion. According to reports, Wiz will likely raise additional funding or engage private equity assistance to complete the deal.

SentinelOne’s shares trended upwards 3.2% on the news on Friday.

Analyst QuickTake: The news closely follows reports of SentinelOne hiring investment bank Qatalyst to explore sale options amid profitability issues. The two companies announced a strategic agreement in March to offer a joint cloud security solution.