Nandini Roy Choudhury, writer
Brief news
- Google is in advanced discussions to acquire cybersecurity firm Wiz for $23 billion.
- Wiz, founded in 2020, has experienced rapid growth and was considering an IPO before the potential acquisition.
- This would be Google’s largest acquisition to date and highlights its commitment to cybersecurity, despite ongoing antitrust scrutiny.
Deatailed news
The Wall Street Journal reported on Sunday that Google is in advanced discussions to acquire cybersecurity firm Wiz for $23 billion, stating individuals who are familiar with the matter.
The Journal was informed by individuals who are acquainted with the situation that an agreement may be imminent.
Wiz was established in 2020 and has experienced accelerated growth under the leadership of CEO Assaf Rappaport. As recently as May, when the company attained a valuation of $12 billion, it had been considering an IPO.
A representative of Wiz declined to provide a response.
Wiz’s cloud security offering is particularly appealing to large organisations with substantial computational resources, as it provides executives and cybersecurity professionals with a comprehensive understanding of the company’s cloud presence. It is supported by a number of prominent firms, such as Sequoia Capital, Index Ventures, Insight Partners, and Israeli venture capital firm Cyberstarts.
Should the transaction be finalised, it would represent Google’s most significant acquisition to date. It would also emphasise a clear and ongoing commitment to cybersecurity, particularly in light of the fact that nation-state and criminal actors have successfully disrupted governments and large organisations. Google has previously made significant cyber acquisitions, such as the $5.4 billion acquisition of cybersecurity firm Mandiant only two years ago.
However, the organisation is currently confronted with unprecedented levels of antitrust scrutiny. Google has been charged by the Justice Department on antitrust grounds on two separate occasions. The most recent litigation, which was filed in 2023, emphasised the company’s acquisition practices.
However, the company’s reported discussions with Wiz would indicate that it has developed a new interest in mergers and acquisitions, despite any potential competitive challenges. CNBC previously reported that Google had been in discussions to acquire Hubspot, a company that specialises in sales software. However, it is said that Google’s interest in the acquisition has since diminished.
A request for comment was not promptly responded to by Google.
Source : CNBC News
