Wiz has decided against a $23 billion acquisition by Google, opting instead to continue with its original plan for an initial public offering. This deal would have marked Google's largest-ever acquisition.
Co-founder Assaf Rappaport expressed the difficulty of turning down such a significant offer. Concerns about antitrust issues and investor interests contributed to the decision to move forward independently.
Rappaport emphasized that the company’s focus remains on reaching key goals: an IPO and achieving $1 billion in annual recurring revenue. Wiz has been aiming for these milestones well before any talks with Google were made public.
Rejecting the deal means Wiz remains at its current $12 billion valuation, a significant rise since its founding in 2020. The company rapidly achieved $100 million in annual revenue within 18 months and reached $350 million last year.
Wiz’s cloud security offerings, which include prevention and active detection, are appealing to major firms and would have strengthened Google’s position against competitors like Microsoft in the security software sector.
With few tech exits this year due to market conditions and regulatory challenges, Wiz's decision is notable. The setback disappoints investors like Index Ventures and Sequoia, who anticipated significant returns.
Wiz's founders, previously behind security firm Adallom, which sold to Microsoft for $320 million, have a track record of success. The pandemic accelerated Wiz's growth as companies shifted to cloud solutions, enhancing its relevance in the market.
Just a year after its founding, Wiz secured a $100 million funding round, underscoring its early financial success.
