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Google parent Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) is in advanced talks to buy cybersecurity startup Wiz for ~$23B, The Wall Street Journal reported, citing people familiar with the matter.
A deal might be reached soon, provided negotiations don’t fall apart, marking Google’s (GOOG) largest acquisition so far.
Wiz was founded in Israel in 2020 and is now headquartered in New York, led by chief executive Assaf Rappaport. The cybersecurity startup provides cloud security services with real-time threat detection and responses powered by artificial intelligence.
Wiz raised $1B earlier this year at a valuation of $12B and was considering going public. It had $350M in annual recurring revenue in 2023 and is backed by prominent Silicon Valley venture capitalists, the report said.
The acquisition of Wiz could boost Google’s (GOOG) cloud computing business, which currently lags Amazon (AMZN) Web Services and Microsoft (MSFT).
The potential Google-Wiz deal could face significant regulatory review, as antitrust actions have intensified against Google (GOOG) and other tech giants in recent years.
The reported negotiations with Wiz indicate a shift in Google’s (GOOG) strategy, as previous reports suggested the company’s waning interest in acquiring HubSpot, a sales software provider.
In March 2022, Google (GOOG) bought cybersecurity firm Mandiant for $5.4B in an all-cash deal.