Wiz, the Israeli cybersecurity startup, has decided to end talks with Google parent Alphabet on a proposed $23 billion deal, according to a memo seen by Reuters. Wiz CEO Assaf Rappaport stated that the company will now focus on an initial public offering as originally planned.
Rappaport expressed confidence in the decision, saying, “Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice.”
While neither Alphabet nor Wiz have officially acknowledged the deal talks, discussions between the two companies began after Wiz raised $1 billion from venture capital investors earlier this year. This funding round had valued Wiz at $12 billion.
Wiz provides cloud-based cybersecurity solutions to help companies identify and remove critical risks on cloud platforms. The decision to call off the deal will be a setback for Google, which has been investing in its cloud infrastructure and focusing on winning clients for its cloud business.
This development marks the second recent setback for Alphabet in its M&A efforts, following reports that the company decided to walk away from a deal for online marketing software company HubSpot. In March 2022, Alphabet acquired cybersecurity firm Mandiant for $5.4 billion as part of its efforts to address cyber threats and strengthen its cloud computing business.