Israeli cyber-security firm Wiz has turned down a $23bn (£17.8bn) buyout offer from Google’s parent company, Alphabet, which would have been Alphabet’s biggest purchase ever.
In an internal memo to staff, Wiz’s founder and CEO Assaf Rappaport said he was “flattered” by the offer but that the company aims to reach $1bn (£775m) in revenue before going public.
A source told the BBC that the offer was “very tempting,” but Wiz believes it can become the largest cyber-security firm on its own.
Wiz reported an annual recurring revenue of $500m (£387m) earlier this year and claimed to be the fastest-growing software company in history, reaching $100m (£74m) in annual revenue within its first 18 months in 2022.
In his memo, Rappaport acknowledged the buzz around the potential acquisition but said the company decided to continue building independently.
Wiz, which started in March 2020, was founded by Rappaport and his three co-founders, who met while serving in the Israeli military’s cyber division.
Their first venture, Adallom, was sold to Microsoft for $320m (£248m) in 2015, after which they worked at Microsoft before leaving to start Wiz.
Wiz’s rejection of Google’s offer means it will seek an initial public offering (IPO) to debut on a stock exchange.
The company, valued at $12bn (£9.3bn) in May during a fundraising campaign, has offices in New York, Tel Aviv, and three other US locations.
According to BBC, London Stock Exchange’s head of tech, Neil Shah, praised Wiz’s founders for taking a bold risk, saying, “They saw where the value went last time when they sold. Good luck to them.”
This story shows how Wiz, with its impressive growth and military roots, is aiming to make a significant mark in the cyber-security industry by staying independent .
Credit : BBC
https://www.bbc.com/news/articles/c3gdlng47k7o