NEW YORK: Google parent Alphabet is in advanced discussions to acquire cybersecurity startup Wiz for roughly $23 billion, a person familiar with the matter said on Sunday, in a deal that would represent the technology giant’s biggest acquisition ever.
Wiz, originally founded in Israel and now based in New York, is among the world’s fastest-growing software startups. It specializes in cloud-based cybersecurity solutions featuring real-time threat detection and AI-powered responses.
If Alphabet proceeds with the acquisition, it would mark the technology giant’s largest-ever purchase. This move comes amidst heightened regulatory scrutiny of major tech firms during President Joe Biden’s administration, with regulators increasingly wary of industry consolidation through acquisitions.
In 2023, Wiz reported revenues of approximately $350 million and serves 40% of Fortune 100 companies, showcasing its robust market presence. Recently, it raised $1 billion in a funding round valuing the company at $12 billion.
The technology sector has seen a surge in mergers and acquisitions this year, highlighted by Synopsys’ $35 billion acquisition of Ansys and Hewlett Packard Enterprise’s $14 billion deal for Juniper Networks. Technology transactions led M&A activity in the first half of the year, rising more than 42% year-on-year to $327.2 billion, as reported by Dealogic.
Earlier on Sunday, The Wall Street Journal first reported Alphabet’s discussions with Wiz.
