Israeli cybersecurity firm aims for IPO after declining Alphabet’s bid
Israeli cybersecurity firm Wiz has rejected a USD 23 billion takeover offer from Google parent company Alphabet, which would have been Alphabet’s largest-ever acquisition. In an internal memo to staff, Wiz founder and chief executive Assaf Rappaport expressed his appreciation for the offer but stated that the company would instead aim to reach USD 1 billion in revenue before pursuing a public share offering.
A source close to the deal described the offer as “very tempting,” but noted that Wiz believes it is capable of growing independently to become the world’s largest cyber-security company. Earlier this year, the firm reported an annual recurring revenue of USD 500 million.
Wiz has claimed the title of the fastest-growing software company in history, reaching USD 100 million in annual revenue within its first 18 months in 2022. “I know the last week has been intense, with the buzz around a potential acquisition,” Rappaport wrote in the memo to staff. “While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz.”
By turning down Google’s offer, Wiz plans to pursue an initial public offering (IPO), marking a significant step towards listing on a stock exchange. Wiz is the third venture by Rappaport and his co-founders Ami Luttwak, Roy Reznik, and Yinon Costic, who first met while serving in the Israeli military’s elite cyber unit, equivalent to the UK’s GCHQ or the US National Security Agency.
Many leading Israeli cyber-security companies, including Check Point, Palo Alto, and Armis, were founded by veterans of this division. In 2012, Rappaport and his team launched Adallom, a cyber-security company later acquired by Microsoft for USD 320 million in 2015. Following the acquisition, the founders joined Microsoft to work on security products before leaving to establish Wiz in March 2020.
