Wiz, a New York-based cybersecurity start-up, has just rejected a $23 billion takeover offer from Alphabet, Google's parent company.
This decision marks the failure of what could have been the largest corporate takeover in Alphabet's history.
Wiz is recognized as one of the fastest-growing software start-ups globally, offering advanced cloud-based cybersecurity solutions powered by artificial intelligence to counter threats in real-time. Forty percent of Fortune 100 companies are among its clients.
The news of the rejected offer came to light through a memo seen by Reuters on Tuesday, as reported by Die Presse.
In the memo, Wiz CEO Assaf Rappaport stated that the company would continue to focus on its initial public offering (IPO) plans. Earlier in the year, Rappaport had indicated that an IPO was a possibility, but there was no rush to proceed.
Confident in Their Decision
"It's hard to say no to such tempting offers, but with our exceptional team, I feel confident making this decision," Rappaport wrote, without directly naming Alphabet.
Neither Alphabet nor Wiz provided immediate comments on the situation.
According to the Wall Street Journal, Alphabet's approach valued the takeover at $23 billion (€21 billion). The discussions between the two companies remained unconfirmed by either party.
Wiz is backed by notable investors, including Blackstone, Greenoaks, and Salesforce Ventures.
In May, the start-up raised $1 billion in a financing round, bringing its valuation to $12 billion.
Challenges for Major Tech Acquisitions
This rejection is a significant blow for Alphabet, which has been keen on expanding its cloud infrastructure.
Under the Biden administration, large tech acquisitions have faced increased scrutiny, making such deals more challenging.
It is likely that regulatory authorities would have examined the proposed takeover closely.
