In a surprising turn of events, Wiz, a rapidly growing cybersecurity company, has decided to pursue an initial public offering (IPO) instead of accepting a $23 billion acquisition offer from Google. This decision has stirred significant interest in the tech and investment communities, given the implications for both companies and the broader cybersecurity market. Here's everything you need to know about Wiz, the company that said no to Google.

Key Takeaways

• Wiz, a top cybersecurity firm, rejected Google's $23B acquisition offer.

• The company will pursue an IPO to maintain growth and independence.

• Wiz's decision highlights its confidence and market strength in cloud security.

The Rise of Wiz

Founded in 2020, Wiz quickly established itself as a formidable player in the cybersecurity space. The company offers an enterprise-facing cloud security platform that provides real-time threat detection and responses powered by artificial intelligence. Wiz's solutions include cloud security posture management, visibility and monitoring, risk assessment, threat detection and response, compliance management, automated remediation, and integration with other security tools. These capabilities help organizations secure their cloud infrastructure, applications, and data, making Wiz an essential partner for many large enterprises.

The founders of Wiz are veterans of the Israel Defense Forces' cyber intelligence unit, known as Unit 8200, which has a reputation for producing top-tier cybersecurity talent. This elite background has contributed to Wiz's innovative approach and rapid success. In just a few years, Wiz's annual recurring revenue (ARR) skyrocketed to $100 million, growing to $350 million by 2023. This impressive growth attracted investments from major venture capital firms like Index Ventures, Sequoia Capital, and Greenoaks.

The Google Acquisition That Wasn't

In an unexpected move, Google initiated advanced talks to acquire Wiz for $23 billion. This acquisition would have been Google's largest ever, significantly surpassing its $5.4 billion purchase of cybersecurity firm Mandiant in 2022. The acquisition was seen as a strategic move for Google to bolster its cybersecurity offerings, especially given the increasing importance of cloud security.

However, the deal was not set in stone. Antitrust scrutiny and regulatory hurdles posed significant challenges, as recent high-profile tech deals have faced intense regulatory pushback. Examples include Microsoft's attempted acquisition of Activision Blizzard, Nvidia's bid for Arm, and Visa's planned purchase of Plaid, all of which were blocked or abandoned due to regulatory concerns.

Despite the potential for regulatory roadblocks, Google's offer was substantial. At $23 billion, the valuation was 46 times Wiz's $500 million in ARR, a multiple that exceeded even that of CrowdStrike, another major player in the cybersecurity market. However, in a bold move, Wiz's founders and leadership team chose to reject the offer and proceed with their original plan to go public.