Google parent company Alphabet is currently in advanced discussions to acquire Israeli cybersecurity firm Wiz for over $30 billion, a source familiar with the matter disclosed. This potential acquisition would be Alphabet's largest to date, with the offer representing a significant increase from the $23 billion bid made last year. Wiz had turned down that offer due to concerns about antitrust clearance.
Despite an internal memo from Wiz mentioning plans for an IPO after rejecting Alphabet's previous bid in July 2024, neither company has officially confirmed the deal. Both have refrained from commenting on the matter in response to Reuters queries on Monday.
The person familiar with the situation mentioned that the deal is not yet finalized and could be subject to change. The news of the ongoing negotiations between the two companies was first reported by The Wall Street Journal, citing insider sources.
Should the acquisition proceed, it would enable Alphabet to penetrate the cybersecurity market and bolster its successful cloud infrastructure business, which brought in revenues exceeding $43 billion last year.
While adjustments to antitrust regulations under the new U.S. administration are anticipated, a deal of this magnitude is expected to face regulatory scrutiny due to the potential creation of a cybersecurity giant.
Despite expectations for increased deal activity following the recent U.S. administration change, global market disruptions caused by imposed tariffs have left many businesses and investors uncertain about major decisions.
Specializing in cloud-based AI-powered cybersecurity solutions, Wiz helps companies identify and address critical risks on cloud platforms. Collaborating with various cloud providers like Microsoft and Amazon, Wiz boasts a clientele ranging from Morgan Stanley to DocuSign. With a workforce of 900 employees across the U.S., Europe, Asia, and Israel, Wiz had announced plans in 2024 to expand its global staff by 400 employees.
In light of the increased focus on cybersecurity post-global incidents like the CrowdStrike outage, interest in the industry has surged, driving companies to prioritize safeguarding their digital assets. Wiz's last private funding round took place in May 2024.