Israeli cybersecurity start-up Wiz has ended talks with Google on a reported US$23-billion deal in which it would have become the US tech giant’s largest-ever acquisition.
Wiz CEO Assaf Rappaport said the company will now focus on an initial public offering, as it had planned earlier, and aims to achieve an annual recurring revenue of US$1-billion.
“Saying no to such humbling offers is tough, but with our exceptional team I feel confident in making that choice,” Rappaport said in the memo, referring to an acquisition offer.
Neither Google nor Wiz have officially acknowledged deal talks. The Wiz memo did not name Google or its parent, Alphabet. Google did not immediately respond to a request for comment, while Wiz declined to comment.
Reuters reported earlier this month that Google was in advanced talks to buy Wiz for roughly $23-billion, citing a person familiar with the matter, a valuation nearly double what Wiz had announced in May, when it raised $1-billion in a private funding round at a $12-billion valuation.
Wiz provides cloud-based cybersecurity solutions that help companies identify and remove critical risks on cloud platforms, powered by artificial intelligence.
Setback for Google
Wiz’s decision to call off the deal will be a setback for Google, which has been investing in its cloud infrastructure and focusing on winning clients for the cloud business that generated more than $33-billion in revenues last year.
The fallout is a second blow for Google in the M&A space in recent times, after reports of its decision to walk away from a deal for online marketing software company HubSpot.
Wiz would have been Google’s second big acquisition in the cybersecurity space, since its $5.4-billion purchase of Mandiant in 2022. — Shivani Tanna, Steven Scheer, Deborah Sophia and Shubham Kalia, (c) 2024 Reuters
