Google Parent Alphabet in Talks to Acquire Cybersecurity Startup Wiz for $23 Billion
3 min read Alphabet, Google's parent company, is in advanced discussions to acquire cybersecurity startup Wiz for $23 billion. This deal could become Alphabet's biggest acquisition, highlighting its focus on cloud-based cybersecurity solutions. Read more on Global AppBajar. July 16, 2024 03:43
Google's parent company, Alphabet (GOOGL.O), is reportedly in advanced negotiations to acquire the cybersecurity startup Wiz for approximately $23 billion. If finalized, this deal would mark Alphabet's largest acquisition to date. A source familiar with the matter, who wished to remain anonymous, shared this information on Sunday.
The acquisition, which is expected to be predominantly funded in cash, could be finalized soon. Wiz, originally founded in Israel and now headquartered in New York, has rapidly emerged as one of the fastest-growing software startups globally. The company specializes in cloud-based cybersecurity solutions, leveraging artificial intelligence for real-time threat detection and response.
This potential acquisition comes at a time when major technology companies face increased regulatory scrutiny under the administration of U.S. President Joe Biden. U.S. regulators have been vocal about their concerns regarding the expansion of large technology firms through acquisitions.
In 2023, Wiz generated approximately $350 million in revenue and boasts a client base that includes 40% of the Fortune 100 companies. The company recently secured $1 billion in a private funding round, which valued it at $12 billion.
Despite these developments, neither Alphabet nor Wiz has commented on the acquisition talks. Wiz collaborates with multiple cloud providers, including Microsoft (MSFT.O) and Amazon (AMZN.O), and serves notable clients such as Morgan Stanley and DocuSign. The company employs 900 people across the United States, Europe, Asia, and Israel, with plans to expand its workforce by 400 in 2024.
Alphabet recently opted not to pursue a takeover of the online marketing software company HubSpot. However, the broader technology sector has seen a surge in dealmaking activities this year. In January, design software company Synopsys (SNPS.O) agreed to acquire Ansys for approximately $35 billion, and Hewlett Packard Enterprise (HPE.N) struck a deal to buy networking gear maker Juniper Networks (JNPR.N) for $14 billion.
According to data from Dealogic, technology mergers and acquisitions accounted for the largest share during the first half of the year, surging more than 42% year-on-year to $327.2 billion.
Stay tuned to Global AppBajar for more updates on this developing story and other significant happenings in the tech industry.
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