Alphabet Inc., the parent company of Google, is reportedly in advanced discussions to acquire cybersecurity firm Wiz for $23 billion, as reported by The Wall Street Journal. The deal, if completed, would mark Google's largest acquisition to date and highlight its continued interest in cybersecurity.
Wiz, founded in 2020 and led by CEO Assaf Rappaport, has experienced rapid growth and was considering an IPO earlier this year with a valuation of $12 billion. The company's cloud security offering provides insight into a company's full cloud presence, making it attractive to large firms with significant computing resources. Wiz is backed by prominent investors such as Cyberstarts, Index Ventures, Insight Partners, and Sequoia Capital.
While Google has made significant cyber acquisitions in the past, including the $5.4 billion purchase of Mandiant, the company is currently facing antitrust scrutiny. The Justice Department has filed two antitrust lawsuits against Google, with the company's acquisition practices being a focal point in the most recent litigation filed in 2023.
Despite these challenges, Google's reported talks with Wiz signal a renewed interest in mergers and acquisitions. Previously, Google was in discussions to acquire Hubspot, a sales software maker, but those talks reportedly cooled off. The potential acquisition of Wiz would demonstrate Google's commitment to cybersecurity, especially in the face of increasing threats from nation-state and criminal actors.
Google has not provided a comment on the reported talks with Wiz. The outcome of these discussions remains uncertain, but if successful, the acquisition could further solidify Google's position in the cybersecurity market.