Google’s Parent Company to Acquire Cybersecurity Startup Wiz

Google’s parent company, Alphabet, is in advanced negotiations to acquire cybersecurity startup Wiz for approximately $23 billion. If finalised, this deal would be Alphabet’s largest acquisition ever.

According to a source familiar with the situation, the transaction, primarily funded in cash, could be completed soon. The source requested anonymity.

Wiz, originally founded in Israel and now based in New York, is a rapidly growing software startup providing cloud-based cybersecurity solutions with AI-powered real-time threat detection and response.

Should Alphabet proceed with the acquisition, it would be a notable instance of a major tech company pursuing a significant deal amid increased regulatory scrutiny under President Joe Biden’s administration.

Also Read: Google to help fund Israeli AI firms, Palestinian startups 

U.S. regulators have shown growing resistance to large tech companies expanding through acquisitions in recent years.

Wiz, which generated about $350 million in revenue in 2023, serves 40% of Fortune 100 companies. It recently raised $1 billion in private funding, valuing the company at $12 billion. Both Alphabet and Wiz did not immediately respond to requests for comment.

Wiz collaborates with multiple cloud providers like Microsoft and Amazon and counts major companies such as Morgan Stanley and DocuSign among its clients. With 900 employees across the U.S., Europe, Asia, and Israel, Wiz has announced plans to add 400 workers globally in 2024.

Alphabet recently decided not to pursue an acquisition of the online marketing software company HubSpot.

The Wall Street Journal first reported Alphabet’s talks with Wiz earlier on Sunday.