Israeli Cybersecurity Startup Wiz Ends $23 Billion Deal Talks with Google

Wiz has terminated discussions with Google’s parent company, Alphabet, regarding a potential $23 billion acquisition that would have marked Alphabet’s largest purchase to date, according to a memo from Wiz obtained by CNN.

Wiz CEO Assaf Rappaport stated that the cybersecurity firm will now concentrate on an initial public offering (IPO) and aims to achieve $1 billion in annual revenue.

“The past week has been intense with speculation about a potential acquisition. While we are honored by the offers we received, we have decided to continue our independent path to building Wiz,” Rappaport noted in the memo.

“Saying no to such significant offers is challenging, but with our outstanding team, I am confident in this decision.”

Neither Alphabet (GOOGL) nor Wiz had formally confirmed the acquisition talks, and the Wiz memo did not explicitly name Google or its parent company.

Earlier this month, CNN reported that Alphabet was in advanced discussions to acquire Wiz for approximately $23 billion, citing a source familiar with the negotiations.

The talks between Google and Wiz began after the startup secured $1 billion from venture capital investors earlier this year, which valued Wiz at $12 billion.

Wiz specializes in cloud-based cybersecurity solutions, helping companies identify and mitigate critical risks on cloud platforms.

Wiz’s decision to halt the deal is a setback for Google, which has been investing in its cloud infrastructure and seeking to attract more clients to its cloud business, which generated over $33 billion in revenue last year.

This is the second recent disappointment for Alphabet in its merger and acquisition (M&A) efforts, following reports that it decided not to pursue a deal with online marketing software company HubSpot.

In March 2022, Alphabet acquired cybersecurity firm Mandiant for $5.4 billion as part of its strategy to enhance its cloud computing business and help companies address cyber threats more effectively.