Google’s parent Alphabet is in advanced talks to acquire cybersecurity startup Wiz for roughly $23 billion, a person familiar with the matter said on Sunday. The Alphabet Wiz deal would represent the technology giant’s biggest acquisition ever. The Alphabet Wiz deal is being funded mostly in cash, could come together soon, the source added, speaking on condition of anonymity.
Wiz, founded in Israel and now headquartered in New York, is one of the fastest-growing software startups globally, providing cloud-based cybersecurity solutions with real-time threat detection and responses powered by artificial intelligence.
Google acquiring Wiz
If Google’s Alphabet moves ahead with the deal, it would be a rare example of a major technology company attempting a mega-deal amid heightened regulatory scrutiny of the sector under U.S. President Joe Biden’s administration. In recent years, U.S. regulators have indicated growing aversion to large technology companies getting bigger through acquisitions.
Cybersecurity startup Wiz
Wiz generated about $350 million in revenue in 2023 and works with 40% of Fortune 100 companies, according to its website. It recently raised $1 billion in a private funding round that valued the company at $12 billion.
Alphabet and Wiz did not immediately respond to requests for comment.
Wiz’s associations
Wiz works with multiple cloud providers such as Microsoft and Amazon and counts companies from Morgan Stanley to DocuSign among its customers. With 900 employees across the U.S., Europe, Asia and Israel, Wiz previously said it planned to add 400 workers globally in 2024.
Alphabet recently decided not to pursue a takeover of online marketing software company HubSpot.
Dealmaking in tech sector
Dealmaking in the broader technology sector has experienced a pickup this year.
In January, design software company Synopsys agreed to buy smaller rival Ansys for about $35 billion. Hewlett Packard Enterprise struck a deal in January to buy networking gear maker Juniper Networks for $14 billion.
Technology accounted for the largest share of mergers and acquisitions during the first half of the year, jumping more than 42% year-on-year to $327.2 billion, according to data from Dealogic.
Alphabet share update
Alphabet’s stock hit a new high of $190.60, up from $186.09.
The stock has seen a remarkable increase of 56.55% over the past year and is up 36.44% year-to-date. Recent analyst ratings from Loop Capital, Needham and Rosenblatt imply a modest downside of 1.39% with an average price target of $187.
Despite this, the bullish trend, supported by the stock trading above its 5, 20 and 50-day exponential moving averages, suggests continued buying interest in Alphabet.
