Alphabet, the parent company of Google, is about to make its biggest acquisitions till date. The tech giant is reportedly in advanced negotiations to acquire cybersecurity startup Wiz in a massive $23 billion (Rs.1,92,149 crore) deal. As per a report by Reuters, it will be the tech giant’s biggest acquisition to date if the deal goes through.
What is Wiz- the company Alphabet wants to buy?
Founded in Israel, Wiz is now headquartered in New York. It has emerged as a leader in cloud-based cybersecurity solutions. Although it is relatively young, Wiz has been able to get some massive clients on board. It currently has around 40% of the Fortune 100 companies. After the latest $1 billion (Rs.8,353 crore) funding round, the company touched a valuation of $12 billion (Rs.1,00,251 crore).
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As of now, the deal of Motorola Mobility for a sum of $12.5 billion is Alphabet’s biggest ever acquisition. However, the tech giant later sold the company for just $2.91 billion.
Alphabet reportedly started to contemplate such a massive acquisition shortly after it decided against buyout of software company HubSpot. With partners such as Microsoft and Amazon, and with prominent clients including Morgan Stanley and DocuSign, Alphabet’s potential acquisition Wiz currently employs around 900 people across the United States, Europe, Asia, and Israel.
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Global acquisitions in tech industry
The first half of 2024 has witnessed a surge in mergers and acquisitions when talking about the broader technology sector. The industry witnessed Synopsys’ acquisition of Ansys for $35 billion and Hewlett Packard Enterprise’s purchase of Juniper Networks for $14 billion. As per data from Dealogic, the technology space has dominated the mergers and acquisitions, accounting for a substantial portion of the $327.2 billion in deals during the first half of the year. This marks a significant increase of over 42% compared to last year.
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Amidst increasing regulatory scrutiny of major tech firms in the US, the potential move acquisition by Alphabet represents a bold move. If the Alphabet-Wiz deal is finalised, it will help Google’s parent company to expand its footprint in cloud-based services and position itself competitively in the evolving digital security landscape.
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