In what could be its largest acquisition to date, Google parent company Alphabet is reportedly in advanced negotiations to purchase cybersecurity startup Wiz for approximately $23bn, Reuters and the Wall Street Journal have reported.
The deal, which is expected to be primarily funded in cash, may be finalised soon, an anonymous source told Reuters on Sunday.
This potential acquisition comes amid a surge in technology sector dealmaking, with Alphabet positioning itself to significantly bolster its cybersecurity capabilities.
Wiz, founded in Israel and now headquartered in New York, has rapidly become a leader in cloud-based cybersecurity solutions.
The company’s platform uses AI to provide real-time threat detection and response, catering to a growing demand for robust cloud security measures.
The startup has experienced meteoric growth, reportedly generating about $350m in revenue in 2023.
Wiz’s client base includes 40 per cent of Fortune 100 companies, highlighting its strong market position. The company recently secured $1bn in private funding, valuing it at $12bn.
Wiz’s multi-cloud compatibility, working with providers like Microsoft and Amazon, could expand Alphabet’s reach in the cybersecurity market.
The startup boasts an impressive client roster, including financial giant Morgan Stanley and e-signature leader DocuSign.
With a current workforce of 900 employees spread across the United States, Europe, Asia, and Israel, Wiz had previously announced plans to add 400 more workers globally in 2024.
The potential Wiz acquisition follows Alphabet’s recent decision not to pursue a takeover of online marketing software company HubSpot, suggesting a strategic focus on enhancing its cybersecurity offerings.
This deal, if completed, would join other significant tech sector acquisitions in 2024, including Synopsys’ $35bn agreement to buy Ansys and Hewlett Packard Enterprise’s $14bn deal for Juniper Networks.
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