Alphabet Inc., the parent of Google, is in advanced talks to buy cybersecurity company Waze for about $23 billion, the Wall Street Journal reported on Sunday, citing people familiar with the matter. If the deal closes, it would be the company’s largest acquisition ever.
The news comes days after reports emerged that Alphabet had decided not to pursue an acquisition of HubSpot (NYSE: NYSE:), a company with a market cap of more than $24 billion. Antitrust scrutiny was said to have played a role in the company’s decision not to acquire HubSpot.
Wiz is on track to generate $350 million in annual recurring revenue in 2023, up from $100 million in the first 18 months after it was founded in 2020 by CEO Asaf Rappaport.
The company raised $1 billion earlier this year at a valuation of $12 billion, suggesting the acquisition is roughly double that level. Wiz is backed by venture capitalists including Sequoia Capital, Andreessen Horowitz, Index Ventures and Lightspeed Venture Partners.
Wiz was one of the rare startups outside of AI that managed to raise capital at a higher valuation in 2024. Many startups are suffering from the effects of the tech boom fueled by a low interest rate environment.
If the deal is completed, it will The deal Google has struck so far could be worth twice as much as its largest deal to date, the $12.5 billion acquisition of Motorola Mobility in 2012. Meanwhile, its second-largest acquisition to date was the $5.4 billion purchase of Motorola Mobility. Another security company, Mandiant.