Cybersecurity startup Wiz has turned down a $23 billion acquisition offer from Alphabet, Google’s parent company, according to a source familiar with discussions.
Despite the offer representing a substantial premium over its last private valuation of $12 billion, Wiz’s management team with the support of investors has opted to remain independent, the person said.
Wiz’s CEO, Assaf Rappaport, sent an email to Wiz’s 1,200 employees around the world, writing that, “Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice.”
New York-based Wiz was founded in 2020 by four former Israeli military officers who previously co-founded a cloud cybersecurity company called Adallom that Microsoft later acquired for $320 million.
Each of them — including Rappaport, Yinon Costica, Roy Reznik, and Ami Luttwak — reportedly owns 9% of Wiz. The outfit’s venture backers include Index Ventures, Sequoia Capital, and Thrive Capital, among others.
Below is the email that Rappaport sent to employees:
Wizards,
I know the last week has been intense, with the buzz about a potential acquisition. While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz.
Let me cut to the chase: our next milestones are $1 billion in ARR and an IPO.
Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice.
The market validation we have experienced following this news only reinforces our goal — creating a platform that both security and development teams love. We are grateful for the faith our employees, investors, and customers have in us as we build the best cybersecurity company in the world.
Thank you for your hard work and focus during these days, which helped us stay on track and finish the quarter stronger than ever. As we always say: LFG.
Assaf
