Alphabet in Advanced Talks to Acquire Cybersecurity Startup Wiz for $23 Billion
Alphabet in Advanced Talks to Acquire Cybersecurity Startup Wiz for $23 Billion
In a groundbreaking move, Google parent company Alphabet is reportedly in advanced negotiations to acquire cybersecurity startup Wiz for a staggering $23 billion. This potential deal, primarily financed in cash, would mark Alphabet’s largest acquisition to date, according to a source familiar with the matter.
Wiz, originally founded in Israel and now based in New York, has quickly emerged as one of the fastest-growing software startups globally. Specializing in cloud-based cybersecurity solutions, Wiz offers real-time threat detection and responses powered by artificial intelligence.
If the acquisition proceeds as planned, it would represent a rare instance of a major technology corporation pursuing a mega-deal amidst increased regulatory scrutiny in the sector under the Biden administration. Recent years have seen U.S. regulators express concerns about tech giants expanding through acquisitions.
With a reported revenue of approximately $350 million in 2023 and partnerships with 40% of Fortune 100 companies, Wiz has solidified its position in the cybersecurity industry. The company recently secured $1 billion in a private funding round, valuing it at $12 billion.
Alphabet and Wiz have yet to comment on the potential acquisition. Wiz collaborates with various cloud providers, including Microsoft and Amazon, and boasts a diverse clientele ranging from Morgan Stanley to DocuSign. The company, which employs 900 individuals across the U.S., Europe, Asia, and Israel, has plans to hire an additional 400 employees globally in 2024.
Notably, Alphabet recently opted out of acquiring online marketing software company HubSpot. The tech sector has witnessed a surge in dealmaking this year, with notable acquisitions such as Synopsys’ purchase of Ansys for $35 billion and Hewlett Packard Enterprise’s acquisition of Juniper Networks for $14 billion.
Technology dominated the mergers and acquisitions landscape in the first half of the year, with a 42% year-on-year increase to $327.2 billion, as per data from Dealogic. The Wall Street Journal initially reported Alphabet’s discussions with Wiz.
As the tech industry continues to evolve, this potential acquisition could have far-reaching implications for both Alphabet and the cybersecurity sector at large. Stay tuned for further developments on this groundbreaking deal.