Cloud cybersecurity startup Wiz has turned down a $23 billion acquisition offer from Alphabet, Google’s parent company, according to a startup memorandum cited by Reuters. Earlier reports suggested that the negotiations were close to finalizing a deal.
Assaf Rappaport, CEO of the US-Israeli startup, stated that Wiz will now concentrate on its initial public offering (IPO) as previously planned, with the goal of achieving $1 billion in annual recurring revenue. “It is difficult to refuse such offers, but thanks to our exceptional team, I am confident in this choice,” Rappaport remarked in the note, referring to the acquisition proposal.
Wiz’s Financial Standing and Future Plans
In a recent funding round, Wiz raised $1 billion, increasing its market value to $12 billion. According to Wiz’s website, the startup generated approximately $350 million in revenue in 2023. Wiz specializes in providing cloud-based cybersecurity solutions, using AI to identify and eliminate critical risks on cloud platforms. Its clients include about 40% of Fortune 100 companies.
Neither Alphabet nor Wiz has officially confirmed the negotiation details, adds NIXSolutions. Notably, Wiz’s memo does not mention either Google or Alphabet. If successful, Alphabet’s proposal would have been the largest acquisition in the company’s history and one of the largest in the technology sector recently. However, something in the offer did not meet Wiz’s satisfaction. We’ll keep you updated as more details about the negotiations and the reason for the deal’s failure emerge.
Alphabet’s Recent Acquisition Attempts
This marks Alphabet’s second failed acquisition attempt in recent memory, following the abandonment of a deal to purchase online marketing software company HubSpot. The reasons behind these unsuccessful deals remain unclear, but they highlight the challenges and complexities involved in high-stakes acquisitions within the tech industry.