Alphabet’s Biggest Acquisition to Date
Alphabet, the parent company of Google, is in advanced discussions to acquire cybersecurity startup Wiz for approximately $23 billion, according to a source familiar with the situation. This potential acquisition would mark Alphabet’s largest deal to date.
Wiz: A Fast-Growing Cybersecurity Leader
The transaction, which is expected to be funded primarily in cash, could be finalized soon, the source noted under the condition of anonymity. Wiz, founded in Israel and currently headquartered in New York, has emerged as one of the fastest-growing software startups globally, offering cloud-based cybersecurity solutions that leverage artificial intelligence for real-time threat detection and response.
If the acquisition proceeds, it would stand out as a significant move by a major tech company amid increasing regulatory scrutiny under U.S. President Joe Biden’s administration. Recently, U.S. regulators have been increasingly wary of large technology firms expanding through acquisitions.
Wiz’s Impressive Client Base and Revenue Growth
In 2023, Wiz reported revenues of approximately $350 million and collaborates with 40% of Fortune 100 companies. The company recently raised $1 billion in a private funding round, bringing its valuation to $12 billion.
Alphabet and Wiz did not immediately respond to requests for comment.
Wiz’s client base includes major cloud providers such as Microsoft and Amazon, and it serves companies like Morgan Stanley and DocuSign. With a workforce of 900 employees spread across the United States, Europe, Asia, and Israel, Wiz plans to add 400 employees globally in 2024.
Earlier this year, Alphabet opted not to pursue the acquisition of online marketing software company HubSpot.
Broader Tech Sector Dealmaking Trends in 2024
The broader technology sector has seen a resurgence in dealmaking this year. In January, design software company Synopsys agreed to acquire Ansys for about $35 billion, while Hewlett Packard Enterprise struck a deal to buy networking equipment maker Juniper Networks for $14 billion.
According to Dealogic, the technology sector accounted for the largest share of mergers and acquisitions in the first half of the year, with a 42% year-on-year increase to $327.2 billion.
