Alphabet reportedly in talks to buy cybersecurity startup

Wiz is one of the fastest-growing software startups globally, providing cloud-based cybersecurity solutions with real-time threat detection and responses

Google parent Alphabet is in advanced talks to acquire cybersecurity startup Wiz for around $23 billion, a person familiar with the matter said on Sunday, in a deal that would represent the technology giant’s biggest acquisition ever.

The Wall Street Journal reported Alphabet’s talks with Wiz earlier on Sunday.

The deal, being funded mostly in cash, could come together soon, the source said, speaking on condition of anonymity. Wiz, founded in Israel and now headquartered in New York, is one of the fastest-growing software startups globally, providing cloud-based cybersecurity solutions with real-time threat detection and responses powered by AI.

If Alphabet moves ahead with the deal, it would be a rare example of a major technology company attempting a mega-deal amid heightened regulatory scrutiny of the sector. In recent years, U.S. regulators have indicated growing aversion to large technology firms getting bigger through acquisitions.

Wiz generated around $350 million in revenue in 2023 and works with 40% of Fortune 100 companies, a per its website. It recently raised $1 billion in a private funding round that valued the firm at $12 billion.

Wiz works with multiple cloud providers like Microsoft and Amazon, and counts companies from Morgan Stanley to DocuSign among its customers. With 900 employees across the US, Europe, Asia and Israel, Wiz previously said it planned to add 400 workers globally in 2024.

Alphabet recently decided not to pursue a takeover of online marketing software firm HubSpot.

Dealmaking in the wider technology sector has experienced a pickup this year.

In January, design software firm Synopsys agreed to buy smaller rival Ansys for around $35 billion. Hewlett Packard Enterprise struck a deal in January to buy networking gear maker Juniper Networks for $14 billion.