Sundar Pichai, CEO of Alphabet Inc., at the Stanford Business, Government and Society 2024 forum in Stanford, California, April 3, 2024.
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Google is in advanced talks to acquire cybersecurity company Wiz for $23 billion, The Wall Street Journal reported Sunday, citing people familiar with the matter.
People familiar with the matter told the Journal that a deal could be reached soon.
Wiz was founded in 2020 and has grown rapidly under CEO Assaf Rappaport. The company is targeting an IPO in May, when it reached a valuation of $12 billion.
Wiz’s representative declined to comment.
Wiz’s cloud security service gives executives and cybersecurity professionals insight into a company’s entire cloud presence, something that’s appealing to large companies with significant computing resources. The service is backed by a roster of blue-chip companies, including Israeli VC firm Cyberstarts, Index Ventures, Insight Partners, and Sequoia Capital.
If completed, the deal would be Google’s largest acquisition ever. It would also underscore a clear and continued investment in cybersecurity, at a time when nation states and criminal actors have sought to disrupt governments and large organizations. Google has made major cyber acquisitions before: The company bought cybersecurity firm Mandiant for $5.4 billion two years ago.
But the company is now facing unprecedented levels of antitrust scrutiny. The Justice Department has sued Google twice on antitrust grounds. The company’s acquisitions were highlighted in the most recent lawsuit, filed in 2023.
But the reported talks with Wiz suggest the company has developed a renewed appetite for M&A, despite concerns about competition. Google was in talks to acquire sales software maker Hubspot, CNBC previously reported, but its pursuit has reportedly cooled.
Google did not immediately respond to a request for comment.
