Wiz ends $23bn deal talks with Google - reports

23rd Jul 2024 08:31

(Sharecast News) - Talks between Google-parent Alphabet and Israeli start-up Wiz have ended, it emerged on Tuesday, ending the prospect of a potential $23bn blockbuster deal.

Had the deal gone ahead, it would have been Alphabet's biggest acquisition to date and part of the US giant's push into cloud services.

But according to multiple reports, include Reuters and the Financial Times, the fast-growing cybersecurity firm decided to end talks.

In a memo to staff, chief executive and co-founder Assaf Rappaport said the company wanted to focus instead on an initial public offering, part of its long-term goal to reach annual revenues of $1bn. Wiz generated revenues of around $350m in 2023.

Rappaport told staff: "Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice."

Founded in Israel in 2020, Wiz works with cloud providers such Microsoft and Amazon to offer a range of cloud-based cybersecurity services.

It currently employs around 900 people, with offices in Tel Aviv and the US, where it is now headquartered.

Backed by venture capital firms including Sequoia Capital and Thrive Capital, Wiz recently raised $1bn in private funding, valuing it at $12bn.

Neither Wiz nor Google have released an official statement.