Wiz, an Israeli cybersecurity start-up, has ended acquisition talks with Google regarding a potential $23 billion deal. This decision shifts Wiz’s focus to its initial public offering (IPO) and achieving $1 billion in annual recurring revenue.
The Chief Executive Officer, Wiz, Assaf Rappaport, explained the decision in a statement, saying: “Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice.” The memo did not name Google or its parent company, Alphabet, and both companies declined to comment.
Recall that Google was in advanced talks to acquire Wiz for approximately $23 billion, nearly double Wiz’s $12 billion valuation from its $1 billion private funding round in May.
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Wiz provides cloud-based cybersecurity solutions that use artificial intelligence to help companies identify and mitigate critical risks on cloud platforms.
The decision to end the talks is a setback for Google, which has been heavily investing in its cloud infrastructure. This is the second recent M&A disappointment for Google, following its reported withdrawal from a deal with HubSpot.
If completed, the acquisition would have been Google’s second major cybersecurity purchase after its $5.4 billion acquisition of Mandiant in 2022.
