Google’s parent Alphabet has been in talks with Wiz to purchase the cyber security startup for $23bn. This would be the biggest acquisition in the history of the tech group.
Alphabet is still weeks away to complete its acquisition of Wiz, according to a person who has direct knowledge of the situation. However, people briefed on the transaction stated that there was still the possibility of the deal falling apart as a number details were still to be resolved in the talks.
A deal would be a good test for the antitrust regulators who have recently been crackingdown on tech groups that buy out new companies in this sector. Alphabet made its last major deal more than 10 years ago, when it acquired Motorola Mobility for $12.5 billion.
Alphabet’s acquisition of Wiz, two years after its purchase of Mandiant at a cost $5.4bn, would be a major step in the cyber security field.
According to PitchBook, the data provider, Wiz is based in New York and has raised approximately $2bn since its founding four year ago. Assaf Rapaport, the Israeli-born founder of Wiz and former Microsoft executive, has led it to a valuation of $12bn. Venture capital firms Sequoia, Thrive and others have invested in the company.
Wiz helps secure cloud-based programs for companies such as Salesforce, Mars, and BMW. This has led to an increase in revenue due to corporations increasingly operating their software and storing data online. Wiz said that it had reached about $350mn annually recurring revenue.
The deal would be one of the largest acquisitions for a venture-backed company.
Wiz refused to comment on these talks which were reported first by The Wall Street Journal. Google did not respond immediately to a comment request.
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