Google’s plan to buy cloud security startup Wiz just fell apart.
Wiz walked away from a $23 billion deal to be acquired by the Big Tech giant, in what would have been Google’s largest-ever deal.
Instead, Wiz will move forward with plans to go public, CEO Assaf Rappaport told employees in a memo seen by several media outlets. He said he wants to get Wiz to $1 billion in annual recurring revenue — a key metric used by investors — and to an initial public offering.
“Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice,” Rappaport wrote in the memo, per Bloomberg.
The Financial Times reported that some directors on the boards of Wiz and Google parent company Alphabet doubted such a deal would pass regulatory scrutiny. Under President Joe Biden, past and prospective deals across industries, and especially in Big Tech, have received closer looks because of antitrust concerns.
Some deals have been scuttled preemptively, while the Federal Trade Commission has intervened in others.
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Wiz, founded in 2020, was last valued at $12 billion. It’s backed by venture capital heavyweights including Sequoia, Blackstone, Thrive Capital, Andreessen Horowitz, and Salesforce Ventures. Other investors include LVMH CEO Bernard Arnault, VC firm Greenoaks Capital, and former Starbucks CEO Howard Schulz.
The startup has been talking about an IPO as recently as May, but had been in talks with Google about a purchase this month, according to CNBC.
The company was established in Israel but moved its headquarters from Tel Aviv to New York City amid big growth.
Wiz employed about 900 people across the US, Europe, and Israel as of February 2024.
Neither Google nor Wiz immediately responded to Business Insider’s requests for comment.
This is a developing story. Please check back for updates.