(Reuters) – Israeli cybersecurity startup Wizz has ended talks with Google parent Albabet on a reported $23 billion deal that would have been the U.S. tech giant’s biggest acquisition ever, according to a company memo seen by Reuters.
Wizz CEO Assaf Rapaport said the company remains focused on its initial public offering as originally planned and aims to reach $1 billion in annual recurring revenue.
“It would be difficult to turn down such a tough offer, but our great team gives us the confidence to make that choice,” Rapaport said in the memo about the offer.
Neither Alphabet (NASDAQ:) nor Wiz have publicly acknowledged any acquisition talks, and Wiz’s memo does not mention Google or Alphabet by name.
Google did not immediately respond to a Reuters request for comment, while Wizz declined to comment.
Reuters reported earlier this month, citing people familiar with the matter, that Alphabet was in talks to buy Wizz for about $23 billion, nearly double the valuation Wizz announced in May when it was valued at $12 billion after raising $1 billion in a private funding round.
Wiz provides cloud-based cybersecurity solutions that leverage artificial intelligence to help businesses identify and eliminate critical risks on their cloud platforms.
Wisz’s decision to walk away from the deal will be a blow to Google, which has been investing in cloud infrastructure and focusing on winning customers for its cloud business, which generated more than $33 billion in revenue last year.
The fallout marks Alphabet’s second recent blow on the M&A front, following reports that it had decided to walk away from a deal with online marketing software company HubSpot (NYSE:).
Wiz was meant to be Aphabet’s second major acquisition in the cybersecurity space after acquiring Mandiant for $5.4 billion in 2022.
