Cybersecurity Firm Wiz Terminates $23 Billion Deal with Google

Cybersecurity firm Wiz calls off $23 billion deal with Google, memo says

July 22 (Reuters) - Israeli cybersecurity startup Wiz has ended talks with Google-parent Alphabet (GOOGL.O), opens new tab on a reported $23 billion deal in which it would have become the U.S. tech giant's largest-ever acquisition, according to a Wiz memo seen by Reuters. Wiz CEO Assaf Rappaport said the company would now focus on an initial public offering, as it had planned earlier, and aims to achieve an annual recurring revenue of $1 billion. "Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice," Rappaport said in the memo, referring to an acquisition offer. Neither Alphabet nor Wiz have officially acknowledged deal talks. The Wiz memo did not name Google or Alphabet. Google did not immediately respond to a Reuters request for comment, while Wiz declined to comment. Reuters reported earlier this month that Alphabet was in advanced talks to buy Wiz for roughly $23 billion, citing a person familiar with the matter, a valuation nearly double of what Wiz had announced in May, when it raised $1 billion in a private funding round at a $12 billion valuation. Wiz provides cloud-based cybersecurity solutions that help companies identify and remove critical risks on cloud platforms, powered by artificial intelligence. Wiz's decision to call off the deal will be a setback for Google, which has been investing in its cloud infrastructure and focusing on winning clients for the cloud business that generated more than $33 billion in revenues last year. The fallout is a second blow for Alphabet in the M&A space in recent times, after reports of its decision to walk away from a deal for online marketing software company HubSpot (HUBS.N), opens new tab. Wiz would have been Alphabet's second big acquisition in the cybersecurity space, since its $5.4 billion purchase of Mandiant in 2022. (This story has been refiled to fix spelling of 'Alphabet' in paragraphs 1 and 10) Reporting by Shivani Tanna, Steven Scheer, Deborah Sophia and Shubham Kalia; Editing by Nivedita Bhattacharjee and Rashmi Aich Our Standards: The Thomson Reuters Trust Principles., opens new tab

Google parent company and Wiz end talks on $23bn deal

Wiz's decision to call off the deal will be a setback for Google, which has been investing in its cloud infrastructure and focusing on winning clients for the cloud business that generated more than $33 billion in revenues last year Israeli cybersecurity startup Wiz has ended talks with Google-parent Alphabet on a reported $23 billion deal in which it would have become the US tech giant's largest-ever acquisition, according to a Wiz memo seen by Reuters. Wiz CEO Assaf Rappaport said the company would now focus on an initial public offering, as it had planned earlier, and aims to achieve an annual recurring revenue of $1 billion. "Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice," Rappaport said in the memo, referring to an acquisition offer. Neither Alphabet nor Wiz have officially acknowledged deal talks. The Wiz memo did not name Google or Alphabet. Google did not immediately respond to a Reuters request for comment, while Wiz declined to comment. Also Read | Unveiling the fiscal blueprint: Analysing India's economic strategy and revenue sources Reuters reported earlier this month that Alphabet was in advanced talks to buy Wiz for roughly $23 billion, citing a person familiar with the matter, a valuation nearly double of what Wiz had announced in May, when it raised $1 billion in a private funding round at a $12 billion valuation. Wiz provides cloud-based cybersecurity solutions that help companies identify and remove critical risks on cloud platforms, powered by artificial intelligence. Wiz's decision to call off the deal will be a setback for Google, which has been investing in its cloud infrastructure and focusing on winning clients for the cloud business that generated more than $33 billion in revenues last year. The fallout is a second blow for Alphabet in the M&A space in recent times, after reports of its decision to walk away from a deal for online marketing software company HubSpot. Wiz would have been Alphabet's second big acquisition in the cybersecurity space, since its $5.4 billion purchase of Mandiant in 2022.

Cybersecurity firm Wiz calls off $23 billion deal with Google, memo says

"Let me cut to the chase: our next milestones are $1 billion in ARR and an IPO," he added. Reuters reported earlier in July that Alphabet was in advanced talks to acquire Wiz for roughly $23 billion, citing a person familiar with the matter. Wiz's decision to call off the deal will be a setback for Google, which has been investing in its cloud infrastructure and focusing on winning clients for the cloud business that generated more than $33 billion in revenues last year. The New York-headquartered company was supposed to be Alphabet's biggest deal ever, and second big acquisition in the cybersecurity space, since its $5.4 billion purchase of Mandiant in 2022. One of the fastest-growing software startups, Wiz raised $1 billion in a private funding round earlier this year, which gave it a valuation of $12 billion. The U.S.-Israeli startup had $350 million in revenue in 2023. Wiz provides cloud-based cybersecurity solutions that help companies identify and remove critical risks on cloud platforms, with real-time threat detection and responses powered by artificial intelligence. Google and Wiz did not immediately respond to Reuters' requests for comment. (Reporting by Shivani Tanna in Bengaluru, Steven Scheer and Deborah Sophia; Editing by Nivedita Bhattacharjee and Rashmi Aich)

Wiz calls off $23 billion deal with Google, reveals memo - Times of India

Google-parent Alphabet's plans to acquire Israeli cybersecurity startup Wiz for a record $23 billion has reportedly come to an end. If the deal would've gone through, this would've been the tech giant's biggest-ever acquisition. According to a Wiz memo seen by the news agency Reuters, the cybersecurity company's CEO Assaf Rappaport has explained the reason behind calling off this acquisation. Earlier this month, Reuters cited a person familiar with the matter to report that Alphabet was in advanced talks to buy Wiz for roughly $23 billion. In May, Wiz raised $1 billion in a private funding round at a $12 billion valuation. Meanwhile, the new valuation offered by Google was nearly double of what the cybersecurity company announced earlier. Why Wiz called off the Google deal Rappaport said that the company would now focus on an initial public offering, as it had planned earlier. He also noted that Wiz is aiming to achieve an annual recurring revenue of $1 billion. "Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice," Rappaport wrote referring to the acquisition offer in the memo. Wiz offers artificial intelligence (AI)-powered cloud security solutions that help businesses detect and eliminate critical threats. How this decision can hurt Google Wiz's decision to back out of the deal can turn out to be a significant setback for Google's cloud ambitions. The tech giant has been aggressively investing in its cloud infrastructure to compete with rivals. However, losing Wiz, a leading cybersecurity firm, may hamper the company's efforts. Of gone through, this deal would've marked Google-parent Alphabet's second high-profile M&A failure within a short period. Recently, the company reported its withdrawal from a deal to acquire HubSpot. Acquiring Wiz would have solidified Google's position in the cybersecurity market, building on its 2022 purchase of Mandiant. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.