Alphabet, the parent company of Google, is in negotiations to acquire the cybersecurity start-up Wiz for approximately $23 billion. According to the Wall Street Journal (WSJ), these discussions are ongoing, with many details yet to be finalized, meaning the deal could still fall through.
Should the acquisition proceed, it would present a significant challenge for antitrust regulators, who have increasingly scrutinized large tech acquisitions in recent years. Alphabet’s last major acquisition was over a decade ago, involving the $12.5 billion purchase of Motorola Mobility. Acquiring Wiz would mark a substantial move into cybersecurity for Alphabet, building on its $5.4 billion purchase of Mandiant two years prior.
Meet Wiz, The US-Israeli Start-up
Founded in 2020 and headquartered in New York, Wiz has secured around $2 billion from investors and was last valued at $12 billion. The company is led by Israeli founder and former Microsoft executive Assaf Rappaport, with backing from venture capital firms Sequoia and Thrive. Wiz also has research and development facilities in Tel Aviv.
Wiz specializes in helping companies secure their cloud programs, which has become increasingly crucial as more businesses transition their software and data storage online. The company has reportedly achieved $350 million in annual recurring revenue. If the acquisition goes through, it would be one of the largest ever for a venture capital-backed company.
Wiz declined to comment on the negotiations, and Google did not respond to a request for comment. This potential deal follows Alphabet’s recent decision not to pursue the acquisition of online marketing software company HubSpot, as reported by Reuters earlier this month.