Israeli Cyber-Security Firm Wiz Rejects $23bn Google Takeover Bid
In a bold move, Israeli cyber-security firm Wiz has turned down a $23 billion (£17.8 billion) takeover offer from Alphabet, the parent company of Google. This would have marked Alphabet’s largest-ever acquisition.
Wiz founder and CEO Assaf Rappaport conveyed his response to the offer in an internal memo to staff, which was seen by the BBC. Rappaport expressed that while he was “flattered” by Alphabet’s offer, the company aims to achieve $1 billion (£775 million) in revenue before considering going public.
A source close to the negotiations described the offer as “very tempting” but noted that Wiz believes it has the potential to become the largest cyber-security company globally by continuing independently. Earlier this year, Wiz reported an annual recurring revenue of $500 million (£387 million). In 2022, the firm claimed to be the fastest-growing software company in history, reaching $100 million (£74 million) in annual revenue within its first 18 months.
Both Wiz and Alphabet have been approached for comment. In his memo, Rappaport acknowledged the recent buzz around a potential acquisition but emphasized the company’s commitment to its current growth strategy. “While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz,” he said.
By rejecting Google’s offer, Wiz is positioning itself for an initial public offering (IPO), a significant step that would see the firm debut on a stock exchange.
Wiz is the third venture by Rappaport and his co-founders Ami Luttwak, Roy Reznik, and Yinon Costica, who first met while serving in the Israeli military’s elite cyber unit. This unit has produced many of Israel’s leading cyber-security companies, including Check Point, Palo Alto, and Armis.
In 2012, the founders started a cyber-security company called Adallom, which was acquired by Microsoft for $320 million (£248 million) three years later. The team continued to work on security products at Microsoft before leaving to launch Wiz in March 2020. Their experience at Microsoft is said to have contributed to Alphabet’s strong interest in acquiring Wiz.
In May, Wiz was valued at $12 billion (£9.3 billion) during a $1 billion (£775 million) fundraising campaign. The decision to reject Alphabet’s offer has been praised by industry commentators. Neil Shah, head of tech at the London Stock Exchange, lauded the founders’ long-term vision on LinkedIn, stating, “The founders of Wiz walk away from a billion-dollar payday and have put it back on the roulette table in the hope of a more rewarding outcome in the long term.”
Wiz operates out of New York, Tel Aviv, and three other US locations, according to its website.