Israeli cybersecurity startup Wiz has ended discussions with Alphabet Inc., Google’s parent company, regarding a $23 billion acquisition deal.
This potential deal, which would have marked Alphabet’s largest acquisition ever, is no longer in consideration, according to a memo from Wiz seen by Reuters.
Wiz CEO Assaf Rappaport explained in the memo that the company will now shift its focus back to an initial public offering (IPO), as originally planned.
“Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice,” Rappaport stated, referring to the rejected acquisition offer.
While neither Alphabet nor Wiz has officially confirmed the discussions, the memo did not mention either company by name.
Google did not immediately respond to a request for comment from Reuters, and Wiz also declined to provide a statement.
Earlier reports had suggested that Alphabet was nearing a deal to acquire Wiz for around $23 billion, nearly double the valuation of $12 billion that Wiz announced in May following a $1 billion funding round.
Wiz specializes in cloud-based cybersecurity solutions that use artificial intelligence to identify and address significant risks on cloud platforms.
Wiz’s decision to call off the acquisition could be a setback for Alphabet, which has been investing heavily in its cloud infrastructure and aims to attract more clients to its cloud business, which generated over $33 billion in revenue last year.
This development follows Alphabet’s recent decision to withdraw from negotiations to acquire online marketing software firm HubSpot.
If the deal had gone through, it would have been Alphabet’s second major acquisition in the cybersecurity sector, following its $5.4 billion purchase of Mandiant in 2022.
Source-Reuters
