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15/07/24
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Google Close to Deal to Acquire Wiz, A Cybersecurity Startup, For $23B
On Sunday, the Wall Street Journal reported that Google’s parent company, Alphabet Inc., is in advanced negotiations to acquire cybersecurity startup Wiz for about $23 billion. If the deal goes through, it would be the firm’s biggest-ever acquisition.
The news came after reports that Alphabet has decided not to pursue an acquisition of HubSpot, a company with a market capitalization of over $24B. It has been reported that antitrust scrutiny may have played a role in the company’s decision to not acquire HubSpot.
Last year, Wiz posted yearly recurring revenue of $350M in 2023, up from $100M in its first 1.5 years after being founded by CEO Assaf Rappaport in 2020.
Earlier this year, the company raised $1B at a valuation of $12B, indicating the acquisition is at nearly twice those levels. Several venture capitalists back Wiz, including Andreessen Horowitz, Sequoia Capital, Lightspeed Venture Partners, and Index Ventures.
Wiz was one of the few startups outside of AI to this year raise capital at a higher valuation. Many startups are hampered by a tech boom hangover driven by the low-interest rate environment.
If a deal is made, it would be nearly twice the value of Google’s biggest deal to date, the 2012 $12.5B takeover of Motorola Mobility.
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