Alphabet, Google’s parent company, is on the verge of acquiring cybersecurity startup Wiz for approximately $23 bn, which would mark Alphabet’s largest acquisition to date. The majority of the payment is expected to be in cash, and the deal could be finalized soon, as reported by Reuters.
Wiz, initially established in Israel and now headquartered in New York, is a rapidly expanding firm that provides cloud-based cybersecurity solutions. These services utilize artificial intelligence to detect and address threats instantly.
In 2023, Wiz generated about $350 mn in revenue and collaborates with 40 percent of Fortune 100 companies.
This prospective acquisition is significant as the Biden administration is closely scrutinizing major tech companies to prevent excessive consolidation through acquisitions. Nonetheless, Alphabet is proceeding with its plans.
Wiz collaborates with leading cloud service providers such as Microsoft and Amazon, with notable clients including Morgan Stanley and DocuSign. The company employs 900 people across the US, Europe, Asia, and Israel, and intends to hire 400 additional employees in 2024.
This potential deal would surpass Alphabet’s previous largest acquisition when it purchased Motorola Mobility for $12.5 bn in 2012. However, Alphabet later sold Motorola Mobility for just $2.91 bn. At that time, Motorola was a key competitor to Samsung in the Android smartphone market.
Recently, Alphabet considered acquiring online marketing software company HubSpot but decided against it. Now, the focus seems to have shifted towards enhancing its cybersecurity capabilities through the possible acquisition of Wiz.
Neither Alphabet nor Wiz has yet commented on the potential deal. The tech industry is keenly observing the situation, as this acquisition could significantly impact both the cybersecurity landscape and Alphabet’s business strategy.
