Google’s parent company, Alphabet, is nearing a monumental acquisition of the cybersecurity firm Wiz for an estimated $23 billion, according to an insider who shared details on Sunday under the condition of anonymity, reported Reuters. This acquisition would mark the largest in Alphabet’s history.
Primarily financed through cash, the deal could be finalized shortly, the report from the wire indicated. Wiz, an Israeli-founded startup now based in New York, has rapidly emerged as a leading player in the cloud-based cybersecurity sector, offering real-time threat detection and AI-powered response solutions.
Should Alphabet proceed, this acquisition would stand out as a significant move by a major tech corporation amid increased regulatory scrutiny during President Joe Biden’s tenure. U.S. regulators have increasingly resisted large-scale acquisitions by tech giants in recent years.
In 2023, Wiz reported approximately $350 million in revenue and serves 40 per cent of Fortune 100 companies, as stated on its website. The company recently secured $1 billion in a private funding round, valuing it at $12 billion.
Wiz collaborates with major cloud providers like Microsoft and Amazon and has a clientele that includes prominent companies such as Morgan Stanley and DocuSign. With a workforce of 900 employees spread across the U.S., Europe, Asia, and Israel, Wiz has announced plans to hire an additional 400 employees globally in 2024.
Alphabet’s decision to not pursue the acquisition of online marketing software firm HubSpot was recently noted.
The technology sector has seen a surge in merger and acquisition activities this year. In January, design software company Synopsys agreed to acquire Ansys for approximately $35 billion, and Hewlett Packard Enterprise struck a $14 billion deal to purchase networking gear maker Juniper Networks.
According to Dealogic, technology mergers and acquisitions have surged, accounting for the largest share in the first half of the year, with a 42 per cent year-over-year increase, reaching $327.2 billion. The Wall Street Journal initially reported on Alphabet’s discussions with Wiz earlier on Sunday.
(With inputs from Reuters)
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