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On July 15, according to people familiar with the matter,GoogleParent company Alphabet is working withcyber securityStartupsWiz is in talks to acquire the company, in a deal that could be worth about $23 billion, making it the largest acquisition in Alphabet's history.

People familiar with the matter said the negotiations are expected to reach an agreement in the near future, provided there are no unexpected events.

Alphabet is choosing to push forward with the deal at a time when tech giants are facing intense antitrust scrutiny. The acquisition will help boost Alphabet’scloud computingThis is an important and fast-growing area, but one in which Alphabet has lagged behind its peers.

Wiz's valuation has been soaring since it was founded by CEO Assaf Rappaport and several partners in 2020. The company, which provides cloud-based cybersecurity software, raised $1 billion in funding earlier this year at a valuation of $12 billion. In 2024, it became one of the few startups outside the artificial intelligence industry to see its valuation rise.

Most startups are still feeling the effects of the tech boom of a few years ago, when a low-interest rate environment pushed up valuations that far outstripped the actual growth of the businesses.

Wiz said the company reached $100 million in annual recurring revenue 18 months after its founding, growing that number to $350 million by 2023. The company is backed by several well-known Silicon Valley venture capital firms, including Sequoia Capital, Andreessen Horowitz, Index Ventures and Lightspeed Venture Partners.

If Google's acquisition is successful, it will provide these investors with a rare exit opportunity, especially in the context of a stagnant initial public offering (IPO) market and an antitrust environment that has made start-ups reluctant to seek mergers and acquisitions.

Wiz's founders sold their first startup, Adallom, to SoftBank for $320 million in 2015.MicrosoftFinally, after a few years at Microsoft, they left and started Wiz.

Wiz is headquartered in New York City, with offices elsewhere in the U.S. and in Israel. The startup has partnerships with some of the largest cloud service companies, including Amazon, Microsoft and Google, according to its website.

Despite its market value of more than $2 trillion, Google has been more conservative in its acquisitions than other tech giants in recent years, making fewer large-scale acquisitions than Microsoft's $26 billion purchase of LinkedIn and $75 billion purchase of Activision Blizzard.

The Wiz acquisition would surpass Google's largest acquisition to date, which was its $12.5 billion purchase of Motorola Mobility in 2012. Google also acquired Fitbit in 2021 for $2.1 billion, a deal that ran into regulatory hurdles after it was announced, and Nest Labs in 2014 for $3.2 billion. Google has also completed major acquisitions in the past few years, including YouTube, DoubleClick, Looker, and Waze.

Google has been strengthening its cybersecurity business in the cloud computing sector. Its most recent large-scale acquisition was the purchase of security company Mandiant for nearly $5.4 billion two years ago, which is also the second largest acquisition in Google's history.

Google is currently awaiting a ruling from the U.S. Justice Department on an antitrust lawsuit alleging that the company used illegal tactics to bolster its dominance in internet search, and on another antitrust lawsuit filed last year alleging unfair practices in Google's advertising technology business, which has yet to go to trial.

While Google has an unbreakable position in the search and online advertising markets, its performance in the cloud computing market is far behind Amazon and Microsoft. But Google is investing heavily in this fast-growing area. Last year, Google Cloud business revenue increased by 26%, and the division achieved an operating profit for the first time.

If the Wiz acquisition goes through, it will be one of the largest tech deals in recent memory. Antitrust scrutiny and high interest rates have caused many potential buyers to remain on the sidelines. Nevertheless, cybersecurity remains a key area of ​​dealmaking around the world. Earlier this year, Cisco acquired cybersecurity and analytics company Splunk for $28 billion. (Xiaoxiao)