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Talks with Wiz about what could be Google’s biggest acquisition have reached an advanced stage.
New York
CNN
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According to a Wiz memo seen by CNN, Wiz has concluded negotiations with Google parent Alphabet on a proposed $23 billion deal that would be the largest acquisition of the Israeli cybersecurity startup by a US tech company.
Wiz CEO Assaf Rappaport says the company is now focused on an initial public offering and growing the business to generate $1 billion in annual revenue.
“I know the past week has been intense, with buzz around a potential acquisition. While we are pleased with the offers we have received, we have chosen to continue our path to build Wiz,” Rappaport said in the memo.
“It’s hard to say no to such a humbling offer, but with our exceptional team, I’m confident in making that choice.”
No letters (Google) nor did Wiz officially acknowledge talks of a deal, and Wiz did not name Google or its parent in the memo.
A person familiar with the matter told CNN on Tuesday that Wiz management, which was seriously considering Google’s offer, decided to walk away because they want to remain an independent company and hope to build Wiz into one of the biggest cybersecurity companies on the planet. .
Risks surrounding a lengthy and challenging antitrust review were in the background, but were not the deciding factor here, the source told CNN.
CNN reported Earlier this month Alphabet was in talks to buy Wiz for around $23 billion.
Discussions between Google and Wiz started after that The startup raised $1 billion from venture capital investors earlier this year, the source said. That funding round valued Wiz at $12 billion.
Wiz provides cloud-based cybersecurity solutions that help organizations identify and eliminate critical risks in cloud platforms.
Wiz’s decision to cancel the deal would be a setback for Google, which has invested in its cloud infrastructure and focused on winning customers for its cloud business, which generated more than $33 billion in revenue last year.
This is the second latest Alphabetical ft M&A efforts, after they are said to have been decided go away From a deal for online marketing software company HubSpot.
In March 2022, Alphabet acquires cybersecurity firm Montiant $5.4 billion as part of its push to help companies better address cyber threats and improve its cloud computing business.
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