Wiz, an Israeli cybersecurity firm, has rejected a $23 billion takeover bid from Google’s parent company, Alphabet. The offer would have been the tech giant’s biggest acquisition to date. In an internal memo to employees, Wiz CEO Assaf Rappaport expressed his decision to continue building the company independently.
“While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz,” Rappaport stated. Wiz, founded in 2020 by alumni of Israel’s cyberintelligence unit, provides a service that scans data on cloud storage providers like Amazon Web Services and Microsoft Azure for security risks. The startup, backed by investors such as Sequoia Capital and Thrive Capital, was most recently valued at $12 billion.
Wiz’s growth strategy and IPO plans
Rappaport outlined the company’s next targets, which include reaching $1 billion in annual recurring revenue and pursuing an initial public offering (IPO). “Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice,” he said in the memo.
Neither Wiz nor Alphabet had released official statements about the termination of the deal talks as of Tuesday morning. There has been skepticism about whether the deal would have passed regulatory scrutiny, as regulators seek to toughen their stance against big tech dealmaking. Wiz, which has operations in New York, Tel Aviv, and three other US locations, says 40% of Fortune 100 companies are its customers, generating $350 million in annual recurring revenue.
The company’s decision to reject Google’s offer and pursue an IPO is seen as a significant move that would see the firm debut on a stock exchange.
