Israeli cybersecurity startup Wiz has ended discussions with Alphabet (GOOGL.O) regarding a reported $23 billion acquisition, which would have marked the U.S. tech giant’s largest-ever purchase. According to a memo seen by Reuters, Wiz CEO Assaf Rappaport stated that the company will now concentrate on an initial public offering (IPO) and aims to achieve $1 billion in annual recurring revenue.
“Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice,” Rappaport said, referencing the acquisition offer. Neither Alphabet nor Wiz has officially acknowledged the deal talks, and the memo did not mention Google or Alphabet specifically.
Reuters had reported earlier this month that Alphabet was in advanced talks to buy Wiz for around $23 billion, nearly double Wiz’s valuation from May, when it raised $1 billion in a private funding round at a $12 billion valuation. Wiz provides cloud-based cybersecurity solutions, leveraging artificial intelligence to help companies identify and mitigate critical risks on cloud platforms.
Wiz’s decision to terminate the deal is a setback for Google, which has been investing heavily in its cloud infrastructure, a business that generated over $33 billion in revenue last year. This development is also another blow for Alphabet in the M&A space, following reports of its decision to walk away from acquiring online marketing software company HubSpot (HUBS.N). Wiz would have been Alphabet’s second major acquisition in cybersecurity since its $5.4 billion purchase of Mandiant in 2022.