Google owner Alphabet Inc (NASDAQ:GOOG) is closing in on the acquisition of cyber security start-up Wiz for approximately US$23 billion, marking what would be the largest acquisition in the tech group's history.
This move comes as part of Alphabet's continued expansion into cyber security, following its US$5.4 billion purchase of Mandiant two years ago.
"Alphabet’s discussions to acquire Wiz are still weeks away from completion,” said one person with direct knowledge of the matter, while others briefed about the transaction said there was still a chance the deal would fall apart.
The potential acquisition is expected to draw scrutiny from antitrust regulators who have been vigilant about tech companies acquiring emerging firms.
Alphabet's last major acquisition was Motorola Mobility for US$12.5 billion over a decade ago.
Wiz, headquartered in New York and founded four years ago, has raised about US$2 billion from investors and is currently valued at US$12 billion.
The start-up, led by Israeli founder and former Microsoft executive Assaf Rappaport, has a client base that includes multinational corporations like Salesforce, Mars, and BMW.
A deal of this magnitude would rank among the largest acquisitions of a venture capital-backed company.