Cybersecurity company Wiz cancels $23 billion deal with Google

According to a Wiz memo, negotiations between Israeli cybersecurity startup Wiz and Google parent Albhabet have come to an end over a rumoured $23 billion purchase, which would have made the acquisition the largest-ever for the American tech giant.

Assaf Rappaport, the CEO of Wiz, stated that the company would now concentrate on its earlier scheduled initial public offering and hopes to reach $1 billion in recurring revenue annually.

"Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice," Rappaport said in the memo, referring to an acquisition offer.

Both Alphabet and Wiz did not officially acknowledge the deal talks. The Wiz memo did not name Google or Alphabet.

Earlier this month, a news source reported that Alphabet is in advanced stage of discussion to buy Wiz for roughly $23 billion, citing a person familiar with the matter, a valuation nearly double of what Wiz had announced in May, when it raised $1 billion in a private funding round at a $12 billion valuation.

Powered by Artificial Intelligence, Wiz is a cloud-based cybersecurity solutions company that helps organizations identify and remove critical risks on cloud platforms.

The decision of Wiz to cancel the deal will be a huge blow for Google, which has been investing in its cloud infrastructure. The cloud business generated more than $33 billion in revenues last year.