Alphabet in Talks to Buy Wiz for $23B

Alphabet is in early talks to acquire cybersecurity startup Wiz for $23 billion, a source claimed Sunday. It would be the tech giant’s largest acquisition.

The source, who spoke anonymously, also mentioned that the transaction, primarily funded in cash, could be finalized shortly.

Founded in Israel and headquartered in New York, Wiz is one of the world’s most rapidly expanding software startups. It offers cloud-based cybersecurity solutions propelled by artificial intelligence and features real-time threat detection and responses.

If Alphabet proceeds with the deal, it would be a rare instance of a significant technology company attempting a mega-deal amid heightened regulatory scrutiny of the sector under U.S. President Joe Biden’s administration.

In recent years, there has been an increasing aversion among U.S. regulators to the expansion of large technology companies through acquisitions.

According to its website, Wiz collaborated with 40% of Fortune 100 organizations and generated approximately $350 million in revenue in 2023.

In a private funding round that valued the company at $12 billion, it recently raised $1 billion.
Alphabet and Wiz did not immediately respond to inquiries for comment.

Its clients include Morgan Stanley and DocuSign, and Wiz collaborates with numerous cloud providers, including Amazon and Microsoft.

Wiz announced its intention to increase its workforce by 400 employees worldwide in 2024, with 900 employees in the United States, Europe, Asia, and Israel.

Alphabet has recently declined to pursue a takeover of HubSpot, an online marketing software company.
The broader technology sector has seen a surge in dealmaking this year.

In January, Synopsys, a design software corporation, agreed to acquire Ansys, a smaller competitor, for approximately $35 billion. In January, Hewlett Packard Enterprise (HPE) agreed to acquire Juniper Networks (JNPR.N), a networking equipment manufacturer, for $14 billion.

According to Dealogic data, technology represented the most significant proportion of mergers and acquisitions during the year’s first half, with a year-over-year increase of over 42% to $327.2 billion.

The Wall Street Journal previously disclosed AAlphabet’s discussions with Wiz on Sunday.