Key Points:
- Alphabet is in advanced talks to acquire Wiz for $23 billion, potentially its largest acquisition ever.
- Founded in Israel and headquartered in New York, Wiz is a rapidly growing cloud-based cybersecurity startup with AI-powered threat detection.
- Wiz generated $350 million in revenue in 2023 and recently raised $1 billion, valuing the company at $12 billion.
- The deal comes amid increased regulatory scrutiny of tech sector acquisitions under the Biden administration.
Google parent Alphabet (GOOGL.O) is reportedly in advanced negotiations to acquire cybersecurity startup Wiz for approximately $23 billion. If finalized, this acquisition would be the largest in Alphabet’s history. According to a source who spoke on condition of anonymity, the deal, which is expected to be funded primarily in cash, could be finalized soon.
Wiz, founded in Israel and now headquartered in New York, is recognized as one of the fastest-growing software startups globally. The company specializes in cloud-based cybersecurity solutions, providing real-time threat detection and response capabilities powered by artificial intelligence. Wiz generated about $350 million in revenue in 2023 and serves 40% of Fortune 100 companies. The company recently raised $1 billion in a private funding round, valuing it at $12 billion.
If Alphabet proceeds with the acquisition, it would mark a significant move amid heightened regulatory scrutiny of the technology sector under the Biden administration. U.S. regulators have increasingly expressed concerns over large technology companies expanding through acquisitions. Despite this, dealmaking in the technology sector has notably increased this year.
Wiz collaborates with multiple cloud providers, including Microsoft (MSFT.O) and Amazon (AMZN.O), and counts prominent companies like Morgan Stanley and DocuSign among its clients. The startup employs 900 people in the United States, Europe, Asia, and Israel and plans to add 400 more workers globally in 2024. Alphabet and Wiz have not yet responded to requests for comment on the potential acquisition.
In contrast to this potential deal, Alphabet recently decided against pursuing a takeover of online marketing software company HubSpot. However, the broader technology sector has witnessed a resurgence in mergers and acquisitions this year. In January, design software company Synopsys (SNPS.O) agreed to buy its smaller rival Ansys for about $35 billion, while Hewlett Packard Enterprise (HPE.N) reached a deal to acquire networking gear maker Juniper Networks (JNPR.N) for $14 billion. The technology sector accounted for the largest share of mergers and acquisitions during the year’s first half, with a 42% year-on-year increase to $327.2 billion.
