Google parent Alphabet is reportedly in advanced discussions to buy cybersecurity firm Wiz for around $23 billion, according to a source familiar with the situation on July 14, reported Reuters. This would be the internet giant's largest purchase to date.
The insider, who spoke on condition of anonymity to Reuters, noted that the acquisition, which is mostly backed with cash, would close shortly.
Founded in Israel and currently based in New York, Wiz is one of the fastest-growing software firms worldwide, offering cloud-based cybersecurity solutions with artificial intelligence-powered real-time threat detection and responses.
In light of increased regulatory scrutiny of the technology industry under U.S. President Joe Biden's administration, Alphabet's proposed mega-deal would be an exceptional instance of a large technology corporation undertaking such a transaction. Over the last several years, American authorities have shown an increasing distaste for huge tech corporations expanding through acquisitions, the report said.
According to its website, Wiz has over $350 million in sales in 2023 and serves 40 percent of Fortune 100 firms. The firm was recently valued at $12 billion and raised $1 billion in a private fundraising round.
Alphabet and Wiz did not immediately respond to requests for comment, said Reuters.
Wiz, a tech firm with operations spanning Microsoft and Amazon's cloud services and boasting clients from Morgan Stanley to DocuSign, is planning significant expansion with 400 new hires globally in 2024. With a workforce of 900 across the US, Europe, Asia, and Israel, Wiz has drawn interest from Alphabet, though recent reports indicate Alphabet has opted out of acquiring HubSpot, an online marketing software company, the report said.
The tech sector has seen heightened deal activity this year, highlighted by Synopsys' $35 billion acquisition of Ansys and Hewlett Packard Enterprise's $14 billion purchase of Juniper Networks in January alone. Technology mergers and acquisitions surged over 42% year-on-year to $327.2 billion in the first half of the year, according to Dealogic data.
According to The Wall Street Journal, discussions between Alphabet and Wiz were recently reported, underscoring the robust deal-making environment in the technology industry, it added.
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