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Wiz says that talks with Alphabet, the parent company of Google, have ended on a reported $23 billion deal that would have been the biggest acquisition ever by a U.S. tech company.
Assaf Rappaport, CEO of Wiz, said that the company would now focus on an IPO, as it had planned earlier, and that it wants to make $1 billion a year in recurring income.
In the memo, Rappaport talked about an acquisition offer and said, “It’s hard to say no to such humbling offers, but with our exceptional team, I feel confident in making that choice.”
Alphabet and Wiz have not officially confirmed that they are in talks about a deal. Google and Alphabet were not named in the Wiz letter.
Reuters asked Google for a comment, but they didn’t answer right away, and Wiz also declined to speak.
A person familiar with the matter told Reuters earlier this month that Alphabet was in advanced talks to buy Wiz for about $23 billion. This is almost twice as much as Wiz was worth when it announced in May that it had raised $1 billion in private funding at a value of $12 billion.
Wiz uses artificial intelligence to power its cloud-based protection solutions, which help businesses find and get rid of major risks on cloud platforms.
If Wiz backs out of the deal, it will be bad for Google, which has been putting money into its cloud infrastructure and trying to get new clients for its cloud business, which made more than $33 billion last year.
News on Tuesday from Bloomberg News said that the global cyber outage last week, which was caused by a bad update from cybersecurity company CrowdStrike was one of the main reasons why the deal talks fell through.
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