Google parent Alphabet opens a new tab in advanced to buy cybersecurity startup Wiz for about $23 billion. This would be the internet giant’s largest acquisition to date.
The source added, speaking on condition of anonymity, that the purchase, which is primarily funded in cash, might come together soon. One of the fastest-growing software firms in the world, Wiz was established in Israel and is currently situated in New York. It offers cloud-based cybersecurity solutions with artificial intelligence-powered real-time threat detection and responses.
Should Alphabet proceed with the acquisition, it would be a unique instance of a significant technology giant pursuing a mega-deal in the midst of increased regulatory scrutiny of the industry under US President Joe Biden’s administration. U.S. regulators have shown an increasing distaste for huge technology corporations expanding through acquisitions in recent years.
According to its website, Wiz worked with 40% of Fortune 100 firms and brought in roughly $350 million in revenue in 2023. In a recent private investment round, it raised $1 billion, valuing the business at $12 billion.
Requests for comments were not immediately answered by Wiz or Alphabet. Wiz has partnerships with a variety of cloud service providers, including Microsoft (MSFT.O) and Amazon (AMZN.O), opens new tab. Its clientele includes businesses like DocuSign and Morgan Stanley. Wiz, which currently employs 900 people in the US, Europe, Asia, and Israel, has previously stated that it intended to hire 400 more people worldwide by 2024.
Recently, Alphabet made the decision not to pursue a buyout of HubSpot, a provider of internet marketing tools.
The smaller rival Ansys was set to be acquired by Synopsys (SNPS.O), opening a new tab, for approximately $35 billion in January. In January, Hewlett Packard Enterprise (HPE.N), opened a new tab, and Juniper Networks (JNPR.N), opened a new tab, reached an agreement for the $14 billion purchase of the networking gear company. According to data from Dealogic, technology accounted for the highest percentage of mergers and acquisitions during the first half of the year, increasing by more than 42% year over year to $327.2 billion.