Wiz has officially ended its discussions with Google-parent Alphabet regarding a potential $23 billion acquisition. This pivotal decision redirects Wiz's efforts towards an initial public offering (IPO), a move aligned with its earlier strategy.
In a recent memo to employees, Wiz CEO Assaf Rappaport highlighted the company's dedication to its IPO objectives and its target to achieve $1 billion in annual recurring revenue. "Declining such substantial offers is tough, but with our exceptional team, I am confident in our choice," Rappaport remarked.
The memo did not directly reference Google or Alphabet, yet earlier reports had suggested that Alphabet was close to acquiring Wiz for around $23 billion, nearly twice the $12 billion valuation Wiz received during its $1 billion private funding round in May.
To date, neither Wiz nor Alphabet has confirmed the specifics of these acquisition talks. Requests for comments from both companies have either been declined or unanswered.
Wiz, known for its cloud-based cybersecurity solutions, employs artificial intelligence to help businesses identify and address critical risks on cloud platforms. The decision to end acquisition discussions represents a setback for Google, which has been significantly investing in its cloud infrastructure and seeking to grow its cloud client base, which generated more than $33 billion in revenue last year.
This development is another hurdle for Alphabet in the mergers and acquisitions arena, following reports of its decision to withdraw from a deal with online marketing software company HubSpot. If the Wiz acquisition had gone through, it would have marked Alphabet's second major investment in the cybersecurity sector, following its $5.4 billion acquisition of Mandiant in 2022.