Technology
Monday, July 15th, 2024 4:29 pm EDT
Key Points
- Google is in advanced negotiations to acquire cybersecurity firm Wiz for $23 billion, a move reported by The Wall Street Journal from sources familiar with the discussions.
- Wiz, established in 2020 and led by CEO Assaf Rappaport, had been preparing for an IPO earlier in 2024 with a valuation of $12 billion, highlighting its rapid growth in the cybersecurity sector.
- The potential acquisition underscores Google’s strategic commitment to enhancing its cybersecurity capabilities amid increasing disruptions by nation-state and criminal actors, despite facing heightened antitrust scrutiny and legal challenges from the Justice Department.
Google is reportedly nearing a monumental acquisition deal with cybersecurity firm Wiz, valued at approximately $23 billion according to sources familiar with the matter, as reported by The Wall Street Journal. The potential acquisition signifies Google’s significant foray into bolstering its cybersecurity capabilities amidst rising threats from nation-state and criminal actors targeting governments and large organizations. Founded in 2020, Wiz has rapidly expanded under CEO Assaf Rappaport, initially eyeing an IPO in May with a valuation of $12 billion. Wiz specializes in cloud security solutions that provide comprehensive visibility into a company’s cloud infrastructure, a crucial asset for enterprises with substantial computing resources. The firm is supported by prominent investors like Cyberstarts, Index Ventures, Insight Partners, and Sequoia Capital.
If finalized, this acquisition would mark Google’s largest-ever deal, surpassing its previous $5.4 billion acquisition of Mandiant two years ago. Despite ongoing antitrust scrutiny, including two lawsuits from the Justice Department, Google’s interest in Wiz underscores its renewed focus on expanding through mergers and acquisitions. The reported talks with Wiz suggest Google’s strategic shift towards strengthening its cybersecurity capabilities, even as its pursuit of other acquisitions, such as sales software maker Hubspot, has reportedly diminished. As of now, Google has not provided an official comment on the potential acquisition of Wiz.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/07/14/google-wiz-cybersecurity-deal-largest-ever.html
