Google nears a deal to acquire Israeli cybersecurity startup Wiz for $23 billion, its largest-ever deal

Google is reportedly near a deal to acquire Israeli cybersecurity startup Wiz for $23 billion, the Wall Street Journal (WSJ) reported on Sunday, citing sources familiar with the ongoing negotiations. The deal, which would be Google’s largest acquisition ever, could be finalized soon, as per insiders familiar with the matter.

If this acquisition goes through, it would mark Google’s largest acquisition to date, underscoring the tech giant’s significant investment in cybersecurity at a time when both nation-state and criminal actors pose increasing threats to governments and major organizations. Google has a history of making substantial moves in this space, such as its $5.4 billion acquisition of Mandiant two years ago.

“Google near $23 billion deal for cybersecurity startup Wiz. The deal would be the tech giant’s largest acquisition ever,” WSJ reported.

Wiz’s spokesperson declined to comment on the matter.

However, Google’s aggressive acquisition strategy comes amidst intense antitrust scrutiny. The Justice Department has filed two antitrust lawsuits against Google, with the company’s acquisition practices being a focal point in the latest case from 2023.

Despite these regulatory challenges, Google’s pursuit of Wiz suggests a renewed interest in mergers and acquisitions. This follows previous reports that Google was in talks to acquire sales software maker HubSpot, although those discussions have reportedly cooled.

Google did not immediately respond to a request for comment.

Wiz was co-founded in 2020 by four Israeli founders Yinon Costica, Ami Luttwak, Assaf Rappaport, and Roy Reznik. They sold their previous security startup company, Adallom, to Microsoft for a reported $320 million in 2015.

Wiz’s platform is used by 15% of Fortune 500 companies. The company has seen rapid growth under the leadership of CEO Assaf Rappaport. The company was considering an IPO as recently as May when it reached a valuation of $12 billion.

Wiz’s cloud security platform provides executives and cybersecurity professionals with comprehensive visibility into a company’s entire cloud infrastructure, making it an attractive option for large enterprises with extensive computing resources. The firm is backed by a lineup of prominent investors, including Israeli VC firm Cyberstarts, Index Ventures, Insight Partners, and Sequoia Capital.

We covered Wiz back in 2021 after the company raised $250 million in a private funding round, more than tripling its valuation to $6 billion, making it a new member of the highly-coveted unicorn club. While most tech companies are conducting layoffs, Wiz, instead, has grown its employee count from 65 in March 2021 to become a 700-person startup company.

Wiz Team