A cyber-security company declines Google’s $23 billion acquisition offer
Israeli cyber-security firm Wiz has turned down a $23 billion (£17.8 billion) acquisition offer from Google parent company Alphabet, marking its largest-ever rejected buyout bid. In an internal memo obtained by the BBC, Wiz founder and CEO Assaf Rappaport expressed gratitude for the offer but affirmed the company’s decision to pursue reaching $1 billion (£775 million) in revenue before considering going public. Despite the temptation of the offer, sources close to the deal disclosed that Wiz believes it can achieve global cyber-security leadership independently.
Earlier this year, Wiz reported annual recurring revenue of $500 million (£387 million) and boasted rapid growth, becoming the fastest-growing software company in history by reaching $100 million (£74 million) in annual revenue within its first 18 months. Both Wiz and Alphabet declined to comment on the matter.
“In the memo to our staff, I acknowledge the recent speculation about a potential acquisition,” stated Mr. Rappaport. “While we appreciate the interest, we have chosen to stay focused on advancing Wiz.”
By rejecting Google’s offer, Wiz plans to proceed with an initial public offering (IPO), a significant milestone that would see the firm listed on a stock exchange. Founded by Mr. Rappaport and his partners Ami Luttwak, Roy Reznik, and Yinon Costic, Wiz marks their third collaboration following their tenure in Israel’s military intelligence, akin to the UK’s GCHQ or the US NSA. Their previous venture, Adallom, was acquired by Microsoft for $320 million (£248 million) in 2015, leading them to join Microsoft to work on security products before departing to establish Wiz in March 2020.
Industry commentators attribute Alphabet’s interest in Wiz to the founders’ successful track record at Microsoft and Wiz’s impressive valuation of $12 billion (£9.3 billion) during a recent $1 billion (£775 million) fundraising round in May. Neil Shah, head of tech at the London Stock Exchange, praised Wiz’s decision on LinkedIn, highlighting their strategic focus on long-term success.
With offices in New York, Tel Aviv, and three other US locations, Wiz continues to chart its course in the competitive landscape of global cyber-security.
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