Google is in advanced negotiations to purchase cybersecurity company Wiz for $23 billion, potentially marking its largest acquisition to date, with a deal anticipated shortly
According to an individual informed of the situation, Google is currently negotiating the acquisition of cybersecurity firm Wiz for $23 billion. The individual also stated that the transaction is anticipated to be finalized in the near future.
Wiz was established in 2020 and has experienced accelerated growth under the leadership of CEO Assaf Rappaport. As recently as May, when the company attained a valuation of $12 billion, it had been considering an IPO.
A representative of Wiz declined to respond. Google did not respond to a request for comment.
Wiz’s cloud security offering provides insight into a company’s complete cloud presence to executives and cybersecurity professionals, which is particularly appealing to large organizations with substantial computing resources.
Several prominent firms support it, such as Sequoia Capital, Index Ventures, Insight Partners, and Israeli venture capital firm Cyberstarts.
Should the transaction be finalized, it would represent Google’s most significant acquisition to date.
It would also emphasize a clear and ongoing commitment to cybersecurity in a time when nation-state and criminal actors have successfully disrupted governments and large organizations.
Google has previously made significant cyber acquisitions, such as the $5.4 billion acquisition of cybersecurity firm Mandiant only two years ago.
However, the organization is currently confronted with unprecedented levels of antitrust scrutiny. The Justice Department has charged Google on antitrust grounds on two separate occasions. The most recent litigation in 2023 emphasized the company’s acquisition practices.
However, the company’s discussions with Wiz indicate that it has developed a newfound interest in mergers and acquisitions, despite potential competitive challenges.
CNBC previously reported that Google had been discussing acquiring Hubspot, a company specializing in sales software. However, it is said that Google’s interest in the acquisition has since diminished.
The Wall Street Journal was the first to disclose the news.
