Alphabet, Google's parent company, is in advanced negotiations to acquire the Israeli cybersecurity startup Wiz for approximately $23 billion, according to a report by The Wall Street Journal. If the deal goes through, it will be Google's largest acquisition ever and the biggest exit in Israeli high-tech history.
According to sources, the deal may be finalized soon, assuming the talks don't collapse. This move comes amid intense antitrust scrutiny on Google and other tech giants. The acquisition could also bolster Google's efforts in the cloud sector, an important and growing business where it lags behind its competitors.
Founded in 2020 by 8200 Unit alumni Assaf Rappaport, Ami Luttwak, Yinon Costica, and Ehud Shander, Wiz provides a cloud security platform. For instance, with a simple connection, the technology scans all layers of the cloud - from network infrastructure, through access permissions, to the application code itself. The in-depth analysis reveals hidden vulnerabilities, innocent mistakes, and security breaches that could open doors for attackers.
The company has raised $900 million to date and reached a valuation of $10 billion. As expected, the acquisition of Wiz could help Google expand its cloud services offering and better compete with companies like Amazon and Microsoft.
Earlier this year, Wiz revealed that by the end of 2023, it had reached an annual recurring revenue (ARR) of $350 million with a 40% market share among Fortune 100 companies, and its goal is to reach $1 billion in sales. Wiz has raised $900 million to date, has a current valuation of $10 billion, employs about 900 people, and plans to hire around 400 more employees in Israel, the US, and other countries over the next year.