Cybersecurity start-up firm Wiz has abandoned negotiations that would have seen Google parent company Alphabet (GOOG/GOOGL) acquire it for $23 billion U.S.
Had the deal been successful, it would have been Alphabet’s largest acquisition ever and enhanced the technology giant’s cybersecurity offerings.
Reasons why the negotiations between Wiz and Alphabet ended without a deal weren’t disclosed. However, Wiz says it now plans to pursue an initial public offering (IPO).
Some media reports are saying that antitrust concerns scuttled the potential deal, though the two companies haven’t confirmed that speculation.
Alphabet had proposed paying nearly doubled the $12 billion U.S. valuation placed on Wiz in its most recent funding round.
Wiz was founded in 2020 and has grown quickly in the last four years.
The company, which specializes in cybersecurity for cloud computing, hit $100 million U.S. in recurring revenue after 18 months and reached $350 million U.S. last year.
Wiz’s cloud security products include prevention, active detection and response. The start-up’s founders previously built security company Adallom and sold that business to Microsoft (MSFT) in 2015 for $320 million U.S.
Analysts said that the acquisition would have helped Alphabet better compete against Microsoft, which sells cybersecurity software, and further grow the Google Cloud business unit.
Alphabet’s cloud segment has faced increased competition from frontrunners Microsoft and Amazon (AMZN) in recent years.
Google Cloud achieved profitability in 2023 after years of big investments and losses.
Alphabet has been on a cybersecurity buying spree in recent years, acquiring company Mandiant for $5.4 billion U.S. in 2022.
Alphabet is scheduled to report second-quarter financial results after the close of markets today (July 23).
The stock of Alphabet has gained 50% over the last 12 months to trade at $181.67 U.S. per share.