TLDR:
Google is reportedly in talks to acquire cybersecurity startup Wiz for $23 billion, making it Google’s largest ever deal and the largest ever for a VC-backed company. This potential acquisition shows Google’s ambition to increase their presence in the cloud security market and potentially surpass AWS and Microsoft’s Azure. The deal comes at a time when the cybersecurity M&A market is showing signs of life, with a significant increase in acquisitions compared to last year.
Article Summary:
Alphabet, the parent company of Google, is reportedly in advanced talks to acquire cybersecurity startup Wiz for $23 billion. This potential acquisition would be Google’s largest ever deal and the largest ever for a VC-backed company, according to Crunchbase data. The deal would double Wiz’s valuation from just two months ago when it raised $1 billion at a $12 billion valuation. Wiz’s software helps companies secure their cloud applications, potentially allowing Google to increase its security revenue and move up in the cloud services market.
The cybersecurity M&A market has shown signs of life in the last six months, with 45 VC-backed cybersecurity startups acquired this year, far outpacing the total for last year. This potential Google-Wiz deal comes at a time when the IPO pipeline still seems slightly frozen, but investors have pointed to Wiz as a company that could go public whenever it chooses. Co-founder and CEO Assaf Rappaport had openly talked about the company’s ambition to go public, but the $23 billion acquisition offer may change those plans.
