Cloud security startup Wiz has rejected a $23 billion acquisition offer from Google, which would have been Google’s largest-ever deal, opting instead to pursue an initial public offering (IPO) as originally planned, CNBC reports.
Wiz co-founder Assaf Rappaport said that the decision was influenced by concerns over antitrust issues and investor concerns. The acquisition would have nearly doubled Wiz’s $12 billion valuation and would have bolstered Google’s cloud segment amid competition from Microsoft and Amazon. The decision is seen as a setback for major investors such as Index Ventures and Sequoia, who are seeking large exits for their funds.
Founded in 2020, Wiz has rapidly grown, hitting $100 million in annual recurring revenue within 18 months and $350 million last year, the firm aims to reach $1 billion in annual recurring revenue. Wiz is now set to pursue its IPO, which had been a goal even before acquisition talks began.
