- The proposed Google-Wiz acquisition has been called off as seen from a Wiz memo written by the CEO, Assaf Rappaport.
- Rappaport aims to grow Wiz’s annual revenue to $1 billion and there are also plans for an Initial Public Offer.
- The increased risk of scrutiny from competition authorities can also be a reason behind the call-off.
Last week, reports surfaced of an alleged acquisition of Wiz, the Israeli cybersecurity firm by Google for a whopping $23 billion. However, Wiz has now called off the deal and plans to grow Wiz as an independent company.
If the deal had gone through, it would have been Google’s biggest-ever acquisition since it acquired Motorola in 2012 for $12.5 billion. However, Assaf Rappaport, Wiz CEO has now made it clear that no such deal will be signed.
‘While we are flattered by the offers we have received, we have chosen to continue on our path to building Wiz’ – Wiz CEO, Assaf Rappaport
This development was sighted in a Wiz memo and there’s no official word yet from either of the parties.
Rappaport did mention that it was indeed an alluring offer and it was tough to let it pass. However, he also highlighted his vision of making Wiz one of the biggest cybersecurity firms in the world.
In fact, Wiz may soon plan an Initial Public Offer (IPO) to raise fresh capital. Rappaport’s next aim is to make Wiz a $1 billion annual revenue company.
Reason for the Call-off
One major reason for the call-off can be the huge risk of interference from the US competition authorities. Whenever a deal this big is signed, there’s always a risk of market monopolization.
Competition authorities do not want one big conglomerate to control a large portion of the market. The recent Microsoft global outage was a classic example of what happens when several industries rely on a single business. One small update bug triggered a global catastrophe, halting flights, hospitals, and businesses all over the world.
Plus, Google has recently acquired Mandiant for $5.4 million, which is also a cybersecurity firm in 2022. In the same year, it acquired yet another Israeli security orchestration, automation, and response (SOAR) provider, Siemplify for $500 million.
These factors would have definitely brought the Wiz-Google deal under the scanner, increasing the burden of compliance. Plus, there was always a chance of the deal not being approved.
That’s why, Wiz may have reconsidered its acquisition decision and decided to focus on growing their own business instead.
