Wiz Rejects Alphabet’s $23 Billion Acquisition Offer, Opts for IPO
Wiz has turned down a $23 billion buyout offer from Google parent Alphabet, preferring to seek an IPO.
Cybersecurity startup Wiz has declined a $23 billion acquisition offer from Google-parent Alphabet, opting to pursue an initial public offering (IPO). Wiz CEO Assaf Rappaport communicated this decision in a memo seen by Reuters.
Strategic Decision for Growth:
“While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz,” stated Rappaport, without mentioning Google. “Let me cut to the chase: our next milestones are $1 billion in ARR and an IPO,” he added.
Alphabet’s Missed Opportunity:
In early July, Reuters reported that Alphabet was in advanced talks to acquire Wiz, which would have marked Alphabet’s largest acquisition to date and its second major cybersecurity purchase following the $5.4 billion acquisition of Mandiant in 2022.
Wiz’s decision to forgo the deal represents a significant setback for Google, which has invested heavily in its cloud infrastructure to attract more clients. The cloud business generated over $33 billion in revenue last year.
Wiz’s Impressive Growth and Funding:
Wiz, one of the fastest-growing software startups, raised $1 billion in a private funding round earlier this year, resulting in a valuation of $12 billion. The US-Israeli startup reported $350 million in revenue for 2023.
Innovative Cybersecurity Solutions:
Wiz specializes in cloud-based cybersecurity solutions, offering real-time threat detection and responses powered by artificial intelligence. These solutions help companies identify and mitigate critical risks on cloud platforms.
Wiz aims to achieve $1 billion in annual recurring revenue (ARR) as its next major milestone by opting for an IPO. This move underscores the company’s ambition to grow independently and strengthen its position in the cybersecurity industry.
