As major tech companies like Microsoft and Apple face increasing antitrust scrutiny from the Biden administration, another tech giant is considering a substantial acquisition.
Google is reportedly in talks to buy cybersecurity startup Wiz for approximately $23 billion, according to sources cited by The Wall Street Journal. This purchase would mark Google’s largest acquisition to date. However, the discussions are not final, and the deal could still fall through.
Wiz, a New York-based cloud security firm, helps companies identify and mitigate risks in their cloud infrastructure. It was founded in 2020 by Chief Executive Assaf Rappaport, along with Yinon Costica, Roy Reznik, and Ami Luttwak.
In May, Wiz secured $1 billion in a funding round with contributions from venture capitalists like Andreessen Horowitz, Lightspeed Venture Partners, and Sequoia Capital, raising its valuation to $12 billion. The funding aimed to pave the way for a potential initial public offering (IPO), with the company targeting $1 billion in revenue ahead of a possible market debut.
Wiz claims to be the world’s fastest-growing startup, reaching $350 million in annual recurring revenue last year and serving over 40% of Fortune 100 companies. The firm also acquired Gem Security, a competitor specializing in real-time detection and response to cloud infrastructure attacks, earlier this year.
If acquired by Google, this would not be the first time the founders of Wiz have sold a startup to a major tech company. In 2015, Rappaport, Luttwak, and Reznik sold their first cloud security startup, Adallom, to Microsoft before eventually leaving to launch Wiz.