Wiz, the New York-based cybersecurity firm, has rejected a $23 billion acquisition offer from Alphabet, the parent company of Google.

The deal, if successful, would have marked Alphabet's largest acquisition to date.

Founded in 2020 by veterans of Israel's cyberintelligence unit, Wiz specialises in cloud security solutions with its tech scanning data stored on cloud platforms like Amazon Web Services and Microsoft Azure to identify potential security risks.

News of advanced talks between Alphabet and Wiz were first reported last week.

In an internal memo however, Wiz chief executive officer Assaf Rappaport confirmed the company's decision to decline the offer, stating: "While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz." Rappaport outlined the company's future goals, including reaching $1 billion in annual recurring revenue and pursuing an initial public offering (IPO).

The proposed deal faced potential regulatory hurdles, as authorities have recently toughened their stance on big tech acquisitions. Last December, Adobe abandoned its $20 billion takeover of Figma due to competition concerns raised by European and UK regulators.

Wiz, which counts 40 per cent of Fortune 100 companies among its customers, was most recently valued at $12 billion during a funding round in May. The company currently generates $350 million in annual recurring revenue.

The rejection of Alphabet's offer represents a setback for Google's cloud division as it seeks to compete with rivals Microsoft and Amazon in the lucrative cloud services market. Neither Wiz nor Google had released official statements regarding the termination of deal talks as of Tuesday morning.

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