Sundar Pichai, CEO of Alphabet Inc., speaks at the Stanford 2024 Business, Government, and Society 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 sources familiar with the matter.
People familiar with the matter told the Journal that a deal could be reached soon.
Founded in 2020, Wiz has grown rapidly under CEO Assaf Rappaport, eyeing an IPO as recently as May when it reached a valuation of $12 billion.
A spokesperson for Wiz declined to comment.
Wiz’s cloud security offering gives executives and cybersecurity professionals visibility into the company’s entire cloud presence, something that appeals to large companies with significant computing resources. It is backed by a roster of blue chip firms, including Israeli VC firm Cyberstarts, Index Ventures, Insight Partners and Sequoia Capital.
If the deal closes, it would be Google’s largest acquisition ever. It also underscores a clear and continued commitment to cybersecurity, at a time when nation states and criminal actors have managed to disrupt governments and large organizations. Google has made major cyber acquisitions before: Two years ago, the company acquired cybersecurity firm Mandiant for $5.4 billion.
But the company is now facing unprecedented levels of antitrust scrutiny. The Justice Department has twice sued Google on antitrust grounds. The company’s acquisition practices were highlighted in the most recent lawsuit, filed in 2023.
But the reported discussions with Wiz would suggest the company has developed a new appetite for M&A, despite concerns about competition. Google was in talks to acquire sales software maker Hubspot, CNBC previously reported, but the pursuit has reportedly cooled.
Google did not immediately respond to a request for comment.