Google Allegedly Negotiating to Purchase Cloud Security Firm Wiz for $23 Billion

Alphabet, the parent entity of Google, could be on the brink of its most significant acquisition to date.

According to The Wall Street Journal, Alphabet is nearing the final stages of negotiations to purchase Wiz for an estimated $23 billion. Although the agreement has yet to be cemented, reports suggest a conclusion could be imminent. Wiz’s proposition is a unified solution to cloud security, quickly analyzing data from major platforms such as Amazon Web Services, Microsoft Azure, and Google Cloud to identify potential security hazards.

The acquisition would presumably serve to bolster Google’s cloud services arm, which witnessed a 28% increase, growing to $9.57 billion in the first reporting period of this year.

As of now, responses from Google and Wiz to inquiries from TechCrunch have not been forthcoming.

This development comes on the heels of Wiz’s disclosure two months ago that it had increased its valuation to $12 billion after a Series E funding round raised $1 billion. Founded by ex-Microsoft employees Assaf Rappaport, Ami Luttwak, Yinon Costica, and Roy Reznik just four years ago, Wiz has amassed funding totaling $1.9 billion.

At the time of their latest funding announcement, Wiz reported $350 million in annual recurring revenue and seemed poised for a spree of acquisitions of smaller security startups, potentially leading up to an initial public offering. However, with Alphabet’s involvement, the company’s trajectory could shift significantly.

Wiz’s investment portfolio is diversely supported by several high-profile investors, including Andreessen Horowitz, Lightspeed Venture Partners, Thrive, Greylock, Wellington Management, Cyberstarts, Greenoaks, Howard Schultz, Index Ventures, Salesforce Ventures, and Sequoia Capital.