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In a move that could mark its largest acquisition to date, Google is in advanced negotiations to acquire cybersecurity start-up Wiz for approximately $23 billion, according to a report from The Wall Street Journal, citing individuals familiar with the matter.
Founded in 2020, Wiz has rapidly established itself under the leadership of CEO Assaf Rappaport, reaching a valuation of $12 billion as recently as May. The company specializes in providing cloud security solutions that offer comprehensive insights into a company’s entire cloud infrastructure, a feature highly attractive to large firms with extensive computing resources.
The proposed acquisition price of $23 billion is nearly double Wiz’s last valuation, underscoring the premium Google is willing to pay to bolster its cybersecurity capabilities. Wiz’s annual recurring revenue has shown significant growth, jumping from $100 million to $350 million in the span of two years. This valuation would place the acquisition at approximately 65.7 times Wiz’s last reported annual revenue.
If completed, this acquisition would significantly enhance Google Cloud’s cybersecurity portfolio, a sector where Google has been actively expanding. The addition of Wiz would help Google Cloud distinguish itself from competitors like Amazon Web Services (AWS) and Microsoft Azure, particularly in the realm of cloud security.
People familiar with the discussion said that Thomas Kurian, the chief executive of Google Cloud, has led the move to acquire Wiz.
This potential deal comes amidst an era of heightened cybersecurity threats from both nation-state actors and criminal organizations. In this context, Google’s acquisition strategy signals a strong commitment to enhancing its cybersecurity offerings, following its $5.4 billion purchase of Mandiant in 2022 and its acquisition of Siemplify, another cybersecurity firm, the same year.
Wiz has quickly attracted significant investment from notable venture capital firms such as Cyberstarts, Index Ventures, Insight Partners, and Sequoia Capital. The company’s innovative cloud security solutions have garnered a customer base that includes high-profile names like BMW, Slack, and Morgan Stanley.
The firm’s cloud security solutions provide executives and cybersecurity professionals with comprehensive visibility into a company’s entire cloud infrastructure, a feature that is particularly attractive to large organizations with extensive computing resources.
Cybersecurity value
The cybersecurity industry has seen a surge in investments and acquisitions, driven by the increasing frequency and sophistication of cyberattacks. Google’s potential acquisition of Wiz is part of a broader trend of consolidation in the tech industry, aimed at addressing these growing cybersecurity challenges.
Arguably comparable within the industry, global cybersecurity services and solutions provider Plurilock Security Inc. (TSXV: PLUR) is also at the forefront of providing cutting-edge cybersecurity services, ensuring organizations can operate securely and efficiently. In 2023, the company reported $70.4 million in revenue, a 9% jump from last year’s.
| Revenue multiple | 5x | 10x | 25x | 50x | 65x |
| Valuation, in millions | $352.1 | $704.2 | $1,761 | $3,521 | $4,577 |
Founded in 2016, the company has revolutionized cybersecurity through groundbreaking academic research that introduced a novel technique for authenticating a person’s identity using behavioral biometrics. This technology continuously confirms identity by observing the motion involved in mouse and keyboard activity, offering significant advantages over traditional biometric technologies.
Today, Plurilock serves as a major North American IT Value-Added Reseller, critical services provider, and cybersecurity solutions vendor. The company supports federal, state, and local governments, as well as top global companies, with its unique expertise and solutions.
Plurilock provides a range of advanced cybersecurity solutions. The Plurilock AI Cloud platform secures users and cloud software without the need for new software deployment, offering flexible single sign-on, granular access controls, and native multi-factor authentication. Plurilock AI DLP ensures comprehensive data loss prevention and cloud security posture management, maintaining control over data access, sharing, and protection against unauthorized activities. Plurilock AI PromptGuard enables safer AI use by acting as a firewall between users and AI platforms, protecting sensitive data during interactions with AI tools. Plurilock AI Complete combines single sign-on, cloud access security broker, and data loss prevention capabilities with real-time identity verification using patented DEFEND™ technology.
Most recently, the company has announced the expansion of its professional services engagement with a leading publicly traded semiconductor company listed on both the S&P 500 and Nasdaq 100 indexes.
FULL DISCLOSURE: Plurilock Security is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Plurilock Security. The author has been compensated to cover Plurilock Security on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
