Alphabet, the parent company of Google, is nearing the acquisition of cybersecurity startup Wiz for approximately $23 billion. If completed, this will mark Alphabet’s largest purchase to date. According to a Reuters report, most of the payment will be in cash, and the deal could be finalized soon.
Wiz, originally founded in Israel and now based in New York, is a rapidly growing company that provides cloud-based cybersecurity services. These services leverage artificial intelligence to detect and respond to threats in real-time. In 2023, Wiz generated around $350 million in revenue and serves 40 percent of Fortune 100 companies.
This potential acquisition is significant, especially given the U.S. government’s increased scrutiny of major tech companies under President Joe Biden’s administration, aiming to prevent them from gaining excessive power through acquisitions. Nevertheless, Alphabet is proceeding with its plans.
Wiz collaborates with prominent cloud service providers such as Microsoft and Amazon, and its clients include major firms like Morgan Stanley and DocuSign. The company employs 900 people across the US, Europe, Asia, and Israel, with plans to hire 400 more in 2024.
This would be Alphabet’s largest acquisition since purchasing Motorola Mobility for $12.5 billion in 2012, a deal that ultimately resulted in a sale of Motorola Mobility for just $2.91 billion. At that time, Motorola was considered a direct competitor to Samsung in the Android smartphone market.
Recently, Alphabet was considering acquiring the online marketing software company HubSpot but decided against it. Now, the focus seems to have shifted towards enhancing its cybersecurity capabilities through the potential acquisition of Wiz.
Neither Alphabet nor Wiz has commented on the potential deal yet. The tech industry is closely monitoring this development, as it could significantly impact both the cybersecurity landscape and Alphabet’s business operations.
