By D. W. G. Kalani Tharanga, JadeTimes News
In a surprising move, Israeli cybersecurity firm Wiz has turned down a $23 billion takeover bid from Google’s parent company, Alphabet. This would have been Alphabet's largest ever acquisition. In an internal memo to staff, Wiz founder and CEO Assaf Rappaport expressed his appreciation for the offer but emphasized the company's decision to pursue its own growth trajectory. Rappaport stated that Wiz aims to achieve $1 billion in revenue before considering an initial public offering (IPO). This decision underscores Wiz’s ambition to establish itself as the leading cybersecurity firm globally. Despite the tempting nature of the offer, a source close to the deal revealed that Wiz believes in its potential to thrive independently.
Earlier this year, Wiz reported an impressive annual recurring revenue of $500 million. The firm also claimed to be the fastest growing software company in history in 2022, having reached $100 million in annual revenue within its first 18 months. The company’s founders, who have a history of successful ventures, are confident in Wiz's ability to scale further. “While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz,” Rappaport noted in the memo. By rejecting Alphabet’s offer, Wiz is gearing up for a significant step towards an IPO, aiming to solidify its presence in the cybersecurity market.
From Military Roots to Cybersecurity Giants
Wiz's journey is a testament to the entrepreneurial spirit and technical expertise of its founders, Assaf Rappaport, Ami Luttwak, Roy Reznik, and Yinon Costica. The quartet met during their service in an elite unit of the Israeli military, akin to the UK’s GCHQ or the US’s NSA. This unit has been the breeding ground for several leading Israeli cybersecurity companies, including Check Point, Palo Alto, and Armis. In 2012, the founders launched their first venture, Adallom, a cybersecurity company acquired by Microsoft for $320 million in 2015. The team continued to innovate at Microsoft, developing security products before departing to establish Wiz in March 2020.
Wiz’s rapid growth and innovative approach have attracted significant attention and investment. In May, the company was valued at $12 billion following a $1 billion fundraising campaign. The founders’ experience at Microsoft and their decision to reject Alphabet’s lucrative offer have fueled excitement within the tech industry. Commentators like Neil Shah, head of tech at the London Stock Exchange, praised the founders' long term vision and willingness to forgo immediate financial gain for potentially greater rewards. With bases in New York, Tel Aviv, and three other US locations, Wiz is strategically positioned to expand its influence and continue its upward trajectory in the cybersecurity landscape.
