California, United States – July 23, 2024 – Israeli cybersecurity company Wiz has reportedly rejected a hefty $23 billion acquisition offer from Google’s parent company, Alphabet. This decision comes after advanced talks between the two tech giants, which would have marked Google’s largest acquisition to date.
According to a Wiz internal memo obtained by Reuters, the company will now prioritize an initial public offering (IPO) as initially planned. Wiz CEO Assaf Rappaport expressed confidence in the company’s ability to thrive independently, aiming for an annual recurring revenue of $1 billion. “While such offers are tempting, I have complete faith in our exceptional team to achieve success on our own terms,” Rappaport stated in the memo.
Neither Google nor Wiz have officially commented on the reported acquisition discussions. The Wiz memo itself did not explicitly mention Google or Alphabet. Google has yet to respond to a request for comment, while Wiz declined to comment.
This news comes after Reuters reported earlier this month that Alphabet was in advanced negotiations to acquire Wiz for a staggering $23 billion. This valuation nearly doubled Wiz’s valuation from May, when the company secured $1 billion in a private funding round at a $12 billion valuation. Wiz specializes in cloud-based cybersecurity solutions powered by artificial intelligence. These solutions help companies identify and eliminate critical risks within their cloud platforms.
Wiz’s decision to call off the deal represents a setback for Google, which has been heavily investing in its cloud infrastructure and aggressively pursuing clients for its cloud business, a sector that generated over $33 billion in revenue last year. This development marks Alphabet’s second recent setback in the mergers and acquisitions (M&A) space. Reports previously surfaced about the company walking away from a potential deal with online marketing software company HubSpot.
