Cybersecurity firm Wiz rejects $23 billion acquisition offer from Google, plans IPO

From Investing.com: 2024-07-22 23:35:37

Cybersecurity startup Wiz has declined a $23 billion acquisition offer from Alphabet to pursue an IPO, CEO Rappaport confirmed in a memo. Google was in advanced talks for the deal. Wiz, valued at $12 billion, raised $1 billion this year and earned $350 million in revenue in 2023, making it a significant player in the cybersecurity space.

Wiz, a rapidly growing software firm, focuses on cloud-based cybersecurity solutions with AI-powered threat detection and response capabilities. The decision to reject Alphabet’s offer spells a setback for Google, which is keen on expanding its cloud business. The New York-based company’s next milestones are $1 billion in ARR and an IPO, as per the CEO’s plans.

The acquisition would have been Alphabet’s biggest ever, following its $5.4 billion purchase of Mandiant in 2022. Despite not naming Google directly, Rappaport expressed determination to continue building Wiz and reaching significant financial milestones. Google has not yet responded to Reuters’ queries on the matter, raising questions about the future implications for both companies in the cybersecurity sector.



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