Cyber security startup Wiz has turned down a proposed $23 billion takeover from Alphabet Inc's (NASDAQ:GOOG) Google in favour of pursuing an initial public offer.
It would have been the tech giant's largest-ever purchase.
Instead, Wiz intends to proceed with its IPO, according to an internal memo by co-founder Assaf Rappaport, reported by CNBC.
The former Microsoft executive acknowledged the difficulty in rejecting such a significant offer but highlighted the company’s strategic focus on achieving $1 billion in annual recurring revenue and completing an IPO.
Concerns over antitrust issues and investor sentiment were cited as potential key reasons for abandoning the deal.
The acquisition would have nearly doubled Wiz’s valuation from its last funding round, which pegged the company at $12 billion.
Founded in 2020, Wiz has rapidly grown, achieving $100 million in annual recurring revenue within 18 months and reaching $350 million last year.
The company’s cloud security solutions have attracted substantial interest, positioning Wiz to enhance Google’s competitive stance against Microsoft.
The decision not to proceed with the acquisition is a setback for venture backers who rely on significant exits to generate returns, with major backers including Index Ventures, Insight Partners, Lightspeed Venture Partners and Sequoia.