Gabby Jones/Bloomberg/Getty Images
Negotiations with Wiz, which would have been Google’s largest acquisition ever, were well advanced.
Israeli cybersecurity startup Wizz has ended talks with Google parent Alphabet on a proposed $23 billion deal that would have made it the U.S. tech giant’s largest acquisition ever, according to a Wizz memo seen by Reuters.
Wizz CEO Assaf Rapaport said the company will now focus on an initial public offering, as originally planned.
“It would be difficult to turn down such a challenging offer, but our talented team gives us the confidence to make that choice,” Rapaport said in the memo about the acquisition offer.
Neither Alphabet (GOOGL) nor Wiz have publicly acknowledged any acquisition talks, and Wiz’s memo does not mention Google or Alphabet by name.
Google did not immediately respond to a Reuters request for comment, while Wizz declined to comment.
CNN reported earlier this month that Alphabet was in talks to buy Wizz for about $23 billion, citing people familiar with the matter.
Google’s talks with Wizz began after the company raised $1 billion from venture capital investors earlier this year, a round that valued Wizz at $12 billion, according to people familiar with the matter.
Wiz provides cloud-based cybersecurity solutions that help businesses identify and eliminate critical risks on cloud platforms.
Wisz’s decision to walk away from the deal will be a blow to Google, which has been investing in cloud infrastructure and focusing on winning customers for its cloud business, which generated more than $33 billion in revenue last year.
This is the second recent A blow for Alphabet The company has reportedly decided to back out of a deal with online marketing software company HubSpot, halting its M&A efforts.
In March 2022, Alphabet acquired cybersecurity company Mandiant for $5.4 billion as part of an effort to help companies better respond to cyber threats and bolster its cloud computing business.
