Cybersecurity startup Wiz Inc. has turned down a takeover bid of up to $23 billion from Alphabet Inc. Instead, the company plans to proceed with an initial public offering (IPO).
“Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice,” Wiz CEO Assaf Rappaport said in a memo to employees. “Let me cut to the chase,” Rappaport said, “the company’s next milestones are reaching $1 billion in annual recurring revenue and an IPO.”
Wiz, based in New York, connects to cloud storage providers like Amazon Web Services and Microsoft Azure to scan data for security risks. The company gained worldwide attention after Google parent Alphabet was in discussions to buy it for nearly double its valuation from two months ago. Before these talks, Wiz had been rapidly expanding through acquisitions and was considering an IPO.
“The market validation we have experienced following this news only reinforces our goal — creating a platform that both security and development teams love,” Rappaport said.
Founded in 2020, Wiz was valued at $12 billion during a May funding round that included investors such as Andreessen Horowitz, Lightspeed Venture Partners, and Thrive Capital.
