Wiz Cancels $23B Google Deal

A Wiz document states that Israeli cybersecurity startup Wiz has stopped talks with Google-parent Alphabet on a $23 billion purchase that would have made it the U.S. tech giant’s largest acquisition

Assaf Rappaport, CEO of Wiz, announced that the company will now concentrate on an initial public offering, as it had previously intended, and is striving to generate an annual recurring revenue of $1 billion.

“I am confident in my ability to decline such humble offers, as our exceptional team has enabled me to do so,” Rappaport stated in the memo, alluding to an acquisition offer.

Either Alphabet or Wiz has not explicitly acknowledged deal negotiations. Alphabet and Google were not identified in the Wiz memo.

Google did not promptly respond to the request for comment from Reuters, and Wiz declined to answer.

Reuters reported earlier this month that Alphabet was in advanced talks to purchase Wiz for approximately $23 billion, citing a person familiar with the matter. This valuation is nearly double that of Wiz’s announcement in May when it raised $1 billion in a private funding round at a $12 billion valuation.

Wiz offers cloud-based cybersecurity solutions propelled by artificial intelligence and assists companies in identifying and eliminating critical risks on cloud platforms.

Wiz’s decision to cancel the agreement will be a setback for Google, which has been investing in its cloud infrastructure and concentrating on acquiring clients for the cloud business, which generated over $33 billion in revenues last year.

After reports of its decision to withdraw from a deal to acquire online marketing software company HubSpot, the aftermath is a second setback for Alphabet in the M&A sector in recent times.

Wiz would have been Alphabet’s second significant cybersecurity acquisition since its $5.4 billion acquisition of Mandiant in 2022.