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Alphabet, the parent company of Google, is in advanced discussions to purchase cybersecurity startup Wiz for approximately $23 billion, according to a source familiar with the matter on Sunday. If finalized, this would mark Alphabet’s largest acquisition to date, predominantly financed in cash.
The source, who spoke on condition of anonymity, indicated that the deal could be completed in the near future. Wiz, originally founded in Israel and now headquartered in New York, has emerged as one of the fastest-growing global software startups. It specializes in cloud-based cybersecurity solutions featuring real-time threat detection and responses powered by artificial intelligence.
An acquisition of this scale by Alphabet would stand out amidst increased regulatory scrutiny of major technology mergers during President Joe Biden’s administration. U.S. regulators have shown growing reluctance towards allowing large tech firms to expand further through acquisitions in recent years.
Wiz reported revenues of approximately $350 million in 2023 and serves 40% of Fortune 100 companies, as per its website. The company recently raised $1 billion in a private funding round, valuing it at $12 billion.
Neither Alphabet nor Wiz responded immediately to requests for comment.
Wiz collaborates with multiple cloud providers including Microsoft and Amazon, boasting a clientele that ranges from Morgan Stanley to DocuSign. With a workforce of 900 spread across the United States, Europe, Asia, and Israel, Wiz announced plans earlier to hire an additional 400 employees globally in 2024.
Earlier this year, Alphabet opted not to pursue the acquisition of online marketing software firm HubSpot. However, dealmaking within the broader technology sector has seen a notable uptick this year.
