Israeli cybersecurity startup Wiz has decided to end discussions with Google parent company Alphabet regarding a proposed $23 billion acquisition deal. This decision was revealed in a memo from Wiz CEO Assaf Rappaport, who stated that the company will now shift its focus towards preparing for an initial public offering, as originally planned.
Rappaport expressed confidence in the choice to decline the acquisition offer, citing the exceptional team at Wiz as a key factor in this decision. While neither Alphabet nor Wiz have officially confirmed the deal talks, sources familiar with the matter have indicated that discussions were indeed underway.
Alphabet's interest in acquiring Wiz stemmed from the startup's expertise in providing cloud-based cybersecurity solutions that help businesses identify and mitigate risks on cloud platforms. Wiz had recently raised $1 billion in funding, valuing the company at $12 billion, leading to the initiation of acquisition talks.
The decision by Wiz to walk away from the deal represents a setback for Google, which has been actively investing in its cloud infrastructure and seeking to expand its client base in the cloud services sector. This move comes shortly after Alphabet reportedly abandoned a potential deal with online marketing software company HubSpot.
Despite the setback with Wiz, Alphabet remains committed to strengthening its cybersecurity capabilities and cloud computing business. In March 2022, the tech giant acquired cybersecurity firm Mandiant for $5.4 billion as part of its ongoing efforts to enhance cybersecurity measures for businesses and bolster its cloud services portfolio.
