Google parent Alphabet (GOOGL.O) is in advanced negotiations to acquire cybersecurity startup Wiz for approximately $23 billion, a source familiar with the matter revealed on Sunday. If finalized, this deal would represent Alphabet’s largest acquisition to date.
The acquisition, expected to be funded primarily in cash, could be finalized soon, according to the source, who requested anonymity. Wiz, founded in Israel and now headquartered in New York, is a rapidly growing software startup that offers cloud-based cybersecurity solutions with real-time threat detection and responses powered by artificial intelligence.
Should Alphabet proceed with the acquisition, it would mark a significant move amid the heightened regulatory scrutiny of major technology firms under President Joe Biden’s administration. U.S. regulators have increasingly opposed large technology companies expanding through acquisitions in recent years.
Wiz, which generated approximately $350 million in revenue in 2023, serves 40% of Fortune 100 companies, according to its website. The company recently raised $1 billion in a private funding round, valuing it at $12 billion.
Alphabet and Wiz have not yet responded to requests for comment.
Wiz collaborates with multiple cloud providers, including Microsoft (MSFT.O) and Amazon (AMZN.O), and counts companies such as Morgan Stanley and DocuSign among its clients. With 900 employees across the United States, Europe, Asia, and Israel, Wiz has previously announced plans to add 400 workers globally in 2024.
Alphabet’s pursuit of Wiz follows its decision not to acquire online marketing software company HubSpot.
The technology sector has seen an uptick in dealmaking this year. In January, design software company Synopsys (SNPS.O) agreed to buy rival Ansys for about $35 billion, while Hewlett Packard Enterprise (HPE.N) struck a $14 billion deal to acquire networking gear maker Juniper Networks (JNPR.N).
Technology mergers and acquisitions accounted for the largest share during the first half of the year, surging more than 42% year-on-year to $327.2 billion, according to Dealogic data.
