Alphabet Inc. in negotiations to acquire cybersecurity startup Wiz for $23 Billion
Alphabet Inc. (NASDAQ: GOOGL), the parent company of Google, is in advanced discussions to acquire the cybersecurity startup Wiz for approximately $23 billion, according to a source familiar with the matter. This acquisition would mark Alphabet’s largest acquisition to date.
The deal, which is expected to be primarily funded in cash, could be finalized soon. Founded in Israel and headquartered in New York, Wiz is recognized as one of the fastest-growing software startups globally. The company provides cloud-based cybersecurity solutions featuring real-time threat detection and response capabilities powered by artificial intelligence.
If the acquisition proceeds, it would be a notable instance of a major technology company pursuing a significant merger amidst increased regulatory scrutiny under U.S. President Joe Biden’s administration. In recent years, U.S. regulators have expressed concerns about large technology companies expanding through acquisitions.
Wiz generated approximately $350 million in revenue in 2023 and collaborates with 40% of Fortune 100 companies, as stated on its website. The company recently raised $1 billion in a private funding round, valuing it at $12 billion.
Wiz partners with multiple cloud providers, including Microsoft (NASDAQ: MSFT) and Amazon (NASDAQ: AMZN), and serves a diverse clientele, from Morgan Stanley to DocuSign. With a workforce of 900 employees spread across the United States, Europe, Asia, and Israel, Wiz plans to expand its global team by 400 employees in 2024.
Alphabet and Wiz have not yet responded to requests for comment on the matter.
Alphabet recently decided against pursuing an acquisition of the online marketing software company HubSpot. However, deal-making in the technology sector has seen a resurgence this year. In January, design software company Synopsys (NASDAQ: SNPS) agreed to acquire its smaller rival Ansys for approximately $35 billion. Additionally, Hewlett Packard Enterprise (NYSE: HPE) reached a $14 billion deal to acquire networking gear maker Juniper Networks (NYSE: JNPR).
The technology sector accounted for the largest share of mergers and acquisitions in the first half of the year, with a 42% year-on-year increase to $327.2 billion, according to data from Dealogic.
Source:https://www.reuters.com/markets/deals/google-parent-close-23-billion-deal-buy-cybersecurity-startup-wiz-wsj-reports-2024-07-14/