Alphabet is in advanced talks to acquire Wiz, which would greatly expand its security capabilities. It would be the largest acquisition ever by the Google parent.
So writes Reuters based on an anonymous source. The target acquisition amount is $23 billion, or €21.1 billion. Wiz has technology for real-time detection and response to cyber threats. By deploying artificial intelligence, Wiz has been able to attract many companies as customers in a short period of time.
Alphabet’s acquisition target was established in early 2020. By 2023, Wiz posted revenues of $350 million. At that time, 40 per cent of the world’s largest companies were customers. It also recently raised $1 billion during an investment round, after which Wiz reached a valuation of $12 billion.
Recently, Wiz itself has made several attempts to accelerate growth through acquisitions. In April, for example, it acquired Gem Security to expand its cloud detection and response capabilities. There was also an ambition to buy Lacework, a party once worth billions, but at a detailed level, no deal ultimately materialized.
The acquisition strategy seems to be paying off, at least financially. Now that Alphabet is interested, it is the question whether merging into a large party was the intended goal. In any case, Alphabet and Wiz have not yet responded.
Alphabet history
Earlier this year, Alphabet had intended to acquire Hubspot, a provider of CRM software. Given Hubspot’s $35 billion valuation that would have potentially been an even bigger acquisition. However, this intended acquisition never reached advanced talks on the details.
Alphabet’s acquisition record is still Mandiant, acquired in 2022 for $5.4 billion. This party, like Wiz, specializes in cybersecurity.
Reuters notes that if Alphabet goes through with the acquisition attempt, it will have to deal with the Biden administration’s aversion to mega-deals. Regulatory authorities are strict on big tech companies that only threaten to get bigger via acquisitions.
Tip: Google parent weighing up its biggest acquisition target ever: HubSpot