Wiz ends talks with Google on $23 billion deal

new york
CNN
—

Israeli cybersecurity startup Wizz has ended talks with Google parent Alphabet on a proposed $23 billion deal that would have made it the US tech giant’s largest acquisition ever, according to a Wizz memo seen by CNN.

Wizz CEO Assaf Rapaport said the company will now focus on an initial public offering and expanding with a goal of reaching $1 billion in annual sales.

“We know the past week has been a tense one with rumors of a potential acquisition. While we appreciate the offer we received, we have chosen to continue on our path to building With,” Rapaport said in the memo.

“It’s tough to turn down such a humbling offer, but our talented team helps me make that choice with confidence.”

Both alphabets (GoogleNeither Google nor Wizz have publicly acknowledged any deal talks, and Wizz’s memo did not name Google or its parent company.

CNN report Alphabet reported earlier this month that it was in advanced talks to buy Wizz for about $23 billion, citing people familiar with the matter.

Google and Wiz’s discussions Startup Raises $1 Billion The company raised funding from venture capital investors earlier this year, sources said, valuing Wizz at $12 billion in that round.

Wiz provides cloud-based cybersecurity solutions that help businesses identify and eliminate critical risks on cloud platforms.

Wisz’s decision to walk away from the deal will be a blow to Google, which has been investing in cloud infrastructure and focusing on winning customers for its cloud business, which generated more than $33 billion in revenue last year.

This is the second recent A blow for Alphabet The M&A efforts are reportedly I walk away From its deal with online marketing software company HubSpot.

March 2022, Alphabet acquires cybersecurity firm Mandiant The company made the acquisition for $5.4 billion as part of an effort to help companies better address cyber threats and bolster its cloud-computing business.