Wiz: Cybersecurity firm rejects Google’s $23bn takeover offer

Israeli cyber-security company Wiz has rejected a $23bn (£17.8bn) takeover offer from Google parent Alphabet.

In an internal memo to staff seen by the BBC, Wiz founder and chief executive Assaf Rappaport said he was “thrilled” by the prospect.

He said the company was seeking to reach $1bn (£775m) in revenue before selling shares to the public.

A source close to the deal told the BBC the offer was “very tempting” but believed Wiz was big enough to try to go it alone and become the world’s biggest cyber-security company.

Earlier this year, the company reported annual revenue of $500m (£387m).

Wiz and Alphabet have been reached for comment.

“I know the past week has been intense, with buzz around a potential acquisition,” Mr Rappaport said in a memo to staff.

“While we’re pleased with the offers we’ve received, we’ve chosen to continue on our path to building Wiz.”

In rejecting Google’s offer, Wiz is looking to make an initial public offering (IPO) — a key step in a company’s debut on a stock market.

Wiz is the third venture by Mr Rappaport and his three co-founders, Amy Ludwak, Roy Resnick and Yinon Kastik, who first met while serving in the Israeli army.

The group worked together as the country’s equivalent of the United Kingdom’s GCHQ, or the US National Security Agency.

Many of the world’s largest Israeli cyber-security companies have been created by people working in this sector, including Check Point, Palo Alto and Armis.

In 2012, the founders started internet security company Adallom, which was acquired by Microsoft three years later for $320m (£248m).

The founders took their team to a tech company as part of the deal, where they worked on security products.

They left Microsoft and launched Wiz in March 2020.

Commentators have attributed the work of Microsoft’s founders to such excitement in Alphabet over the possibility of acquiring Wiz.

In May, it was worth $12bn (£9.3bn) during a $1bn (£775m) fundraising campaign.

“This is the mindset we need in Europe,” Neil Shaw, head of technology at the London Stock Exchange, said in a post on LinkedIn.

“Wiz’s founders walked away from a billion-dollar payday and put it back on the roulette table in the hopes of paying more in the long run.

“They saw where the value went the last time they sold. Wish them all the best.”

Wiz has sites in New York, Tel Aviv and three other US locations, according to its website.