In what would have been its largest-ever acquisition, Google’s parent company Alphabet has had a $23 billion takeover bid for cybersecurity firm Wiz rejected.
Google’s parent company Alphabet has had a $23 billion takeover bid for cybersecurity firm Wiz rejected.
In an internal memo to staff seen by the BBC, Wiz founder and chief executive Assaf Rappaport said he was “flattered” by the offer – which would have been Alphabet’s largest-ever acquisition – but added the company would instead aim to reach $1 billion in revenue before considering a public share sale.
A source close to the deal told the BBC the offer was “very tempting”, but Wiz believed it was strong enough to go it alone and aspire to become the biggest cyber-security company globally.
Earlier this year, the company reported an annual recurring revenue of $500 million and claimed to be the fastest-growing software company in history, reaching $100 million in annual revenue within its first 18 months in 2022.
Mr Rappaport in the memo sent to staff: “I know the last week has been intense, with the buzz around a potential acquisition.
“While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz.”
By rejecting Google’s offer, Wiz plans to pursue an initial public offering – a huge step that would see the firm debut on a stock exchange.
Wiz is the third venture by Mr Rappaport and his co-founders Ami Luttwak, Roy Reznik, and Yinon Costica, who first met while serving in the Israeli military.
The group worked together in Unit 8200, the Israeli equivalent of the UK’s GCHQ intelligence agency or the US National Security Agency.
Many leading Israeli cyber-security companies, including Check Point, Palo Alto and Armis, were founded by veterans of the unit.
In 2012, the founders launched Adallom, a cyber-security firm acquired by Microsoft for $320 million three years later.
They joined Microsoft as part of the deal, working on security products before leaving to establish Wiz in March 2020.
Industry experts attribute the founders’ work at Microsoft to the excitement at Alphabet about potentially acquiring Wiz.
In May, the firm was valued at $12 billion during a $1 billion fundraising campaign.
London Stock Exchange head of tech Neil Shah said in a LinkedIn post: “This is the mindset we need in Europe.
“The founders of Wiz walk away from a billion dollar payday and have put it back on the roulette table in the hope of a more rewarding outcome in the long term. They saw where the value went last time when they sold. Good luck to them.”
Wiz has bases in New York, Tel Aviv and three other US locations, according to its website.
Google’s parent company Alphabet has $23bn takeover bid for Israeli cyber-security firm turned down
