The news comes days after reports surfaced that Alphabet has decided not to pursue an acquisition of HubSpot (NYSE: NYSE:HUBS), a company with a market cap of over $24 billion. Antitrust scrutiny was said to have played a part in the company’s decision not to acquire HubSpot.
Wiz posted annual recurring revenue of $350 million in 2023, up from $100 million in its first 18 months after its founding in 2020 by CEO Assaf Rappaport.
The company raised $1 billion earlier this year at a valuation of $12 billion, suggesting the takeover is nearly double from those levels. Wiz is backed by venture capitalists, including Sequoia Capital, Andreessen Horowitz, Index Ventures, and Lightspeed Venture Partners.
Wiz was one of the rare startups outside of AI to raise capital at a higher valuation in 2024. Many startups are suffering from a tech boom hangover fueled by the low-interest rate environment.
If a deal is completed, it would be nearly double the value of Google’s largest deal to date, a $12.5 billion takeover of Motorola Mobility in 2012. Meanwhile, its second-largest acquisition to date was a $5.4 billion purchase of another security company, Mandiant.
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