Google’s parent company, Alphabet, is reportedly in advanced talks to buy cybersecurity startup Wiz for around $23 billion.
According to an anonymous source, the deal, mainly funded in cash, could be finalised soon. This acquisition comes amid a surge in tech sector deals, with Alphabet aiming to boost its cybersecurity capabilities.
Wiz, founded in Israel and now based in New York, is a leader in cloud-based cybersecurity solutions. Its platform uses AI for real-time threat detection and response, meeting the growing demand for cloud security.
The startup has grown rapidly, generating about $350 million in revenue in 2023. Wiz’s clients include 40 per cent of Fortune 100 companies, showing its strong market position. The company recently raised $ 1 billion in private funding, valuing it at $12 billion.
Wiz’s compatibility with multiple cloud providers like Microsoft and Amazon could enhance Alphabet’s cybersecurity reach.
The startup’s clients include Morgan Stanley and DocuSign. With 900 employees worldwide, Wiz plans to add 400 more workers in 2024.
This potential acquisition follows Alphabet’s decision not to pursue HubSpot, indicating a focus on cybersecurity. If completed, this deal would be among the significant tech acquisitions of 2024, alongside Synopsys’ $35 billion purchase of Ansys and HPE’s $14 billion deal for Juniper Networks.
