Google parent Alphabet is in advanced talks to buy cybersecurity start-up Wiz for about USD 23 billion. This would be the tech giant’s largest acquisition to date.
The deal, which is primarily funded in cash, could come together soon, the news website reported. One of the fastest-growing software start-ups in the world, Wiz was established in Israel and is currently based in New York. It offers cloud-based cybersecurity solutions with artificial intelligence-powered real-time threat detection and responses.
In light of the increased regulatory scrutiny of the technology industry under United States President Joe Biden’s administration, Alphabet’s proposed mega-deal would be an exceptional instance of a major technology company attempting such a transaction. The US regulators have shown a growing distaste for big tech companies expanding through acquisitions in recent years.
According to its website, Wiz has approximately USD 350 million in revenue in 2023 and serves 40% of Fortune 100 companies. In a recent private funding round, it raised USD 1 billion, valuing the business at USD 12 billion.
Wiz serves businesses ranging from Morgan Stanley to DocuSign and collaborates with several cloud service providers, including Microsoft and Amazon. Wiz employs 900 people in the United States, Europe, Asia, and Israel. As of early 2024, the company announced plans to add 400 more employees worldwide by 2024.
Alphabet has decided against pursuing a takeover of HubSpot, a provider of online marketing software. This year has seen an increase in deal-making within the larger technology sector.
A USD 35 billion deal to acquire smaller competitor Ansys was reached in January 2024 by Synopsys, a design software provider. In January, Hewlett Packard Enterprise signed a USD 14 billion deal to acquire Juniper Networks, a networking gear manufacturer.
According to data from Dealogic, technology jumped more than 42% year over year to USD 327.2 billion, accounting for the largest share of mergers and acquisitions during the first half of the year.