The deal between Google and Wiz was valued at $23 billion, potentially making it the most expensive in the history of the search giant.
According to The Verge, the Israeli cybersecurity startup Wiz turned down Google's parent company's offer in favor of an initial public offering (IPO).
“It’s hard to turn down such humbling offers,” wrote Wiz's CEO in a letter to employees.
Founded in Israel in 2020 (now headquartered in New York), Wiz has rapidly evolved under the leadership of CEO Assaf Rappaport. The company generated around $350 million in revenue in 2023 and works with 40% of the Fortune 100 companies, having raised $1 billion in funding at a $12 billion valuation in May (however, had the deal gone through, this figure could have doubled).
In Rappaport’s letter, he mentioned that Wiz would focus on achieving $1 billion in annual recurring revenue alongside the IPO—a goal the cybersecurity firm had set for itself even before negotiations with Google began. Neither Wiz nor Alphabet officially acknowledged that the deal was under discussion.
Wiz provides cloud security solutions for enterprise clients, and if acquired, could potentially enhance Google's position in competing with industry leaders Microsoft and Amazon. Meanwhile, the search giant is facing an unprecedented level of antitrust scrutiny, which could also have impeded the deal: the Justice Department has sued the company twice, and anti-competitive practices were highlighted at a hearing last year.
In 2022, Google had already acquired two cybersecurity firms—Siemplify and Mandiant—for $500 million and $5.4 billion, respectively, with the latter being noted for uncovering the massive SolarWinds hack.
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