Google's parent company, Alphabet, is in advanced talks to buy a cybersecurity startup Wiz for nearly $23 billion. This deal might be the tech giant's biggest acquisition in recent years.
As per a report by Reuters, majority of the deal is expected to be financed with cash, and it may finalise soon. The New York-based startup has rapidly emerged as a leading global software startup. It specializes in cloud-based cybersecurity solutions, real-time threat detection and AI-based responses.
If Alphabet proceeds with the acquisition, it would mark a notable instance of a major technology firm pursuing a massive deal amidst increased regulatory scrutiny under U.S. President Joe Biden's administration. Recently, U.S. regulators have shown greater reluctance toward large technology companies expanding through acquisitions.
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Last year, Wiz reported nearly $350 million in revenue. It also works with 40 per cent of Fortune 100 companies, according to the company's website. Recently, it secured $1 billion in a private funding round, valuing the company at $12 billion.
Founded in January 2020, Wiz was established by Assaf Rappaport, Yinon Costica, Roy Reznik and Ami Luttwak. All of them had previously co-founded Adallom, which was later acquired by Microsoft.
Earlier on Sunday, the Wall Street Journal reported that Alphabet is in discussions with Wiz. The startup employs nearly 900 people across the United States, Europe, Asia and Israel. It had also announced plans to expand its workforce by 400 employees worldwide in 2024.
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In 2022, the tech giant also acquired Siemplify, a leading security orchestration, automation and response (SOAR) platform.
While Google is already making significant developments in the AI space, the tech giant is making sure that its cloud initiatives are not left behind. On year-to-date basis, the shares of Google's parent company, Alphabet, have delivered returns of more than 33 per cent on NASDAQ.
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