According to CNBC, Wiz told its employees that it would be pursuing an initial public offering (IPO) as it had planned previously.

Building Wiz

News of the Google-Wiz acquisition being called off were shared through a memo sent to employees. A Wiz insider, who asked to maintain anonymity, said the decision to walk out of the deal was made after the startup weighed investor and antitrust concerns.

“I know the last week has been intense, with the buzz about a potential acquisition. While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz. Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice,” Assaf Rappaport, Wiz Co-founder said in the memo.

Rappaport said the startup will now focus its energy on the Wiz IPO and growing its revenue to $1 billion annually. Wiz had been working on these goals before its talks with Google went public.

Wiz Valuation

Neither Wiz nor Google had acknowledged the acquisition talks officially. Wiz didn’t mention Alphabet or Google in its memo either. However, sources close to the company said talks between the two companies started soon after Wiz raised $1 billion from venture capital investors early this year.

The funding round placed Wiz valuation at $12 billion. The called off Google-Wiz deal would have doubled this valuation. Founded in 2020, Wiz has grown fast under Rappaport. The start attained the $100 million annual revenue mark 18 months after commencing operations. Last year, its annual revenue was $350 million.

Previously, Wiz founders built Adallom, a security startup. They raised funds from Index and Sequoia, then sold the company to Microsoft for $320 million. The Covid pandemic came soon after Wiz launched in 2020. The pandemic pushed businesses to adopt cloud-based infrastructure and software to keep employees working remotely.

Wiz benefited from this shift. Today, its cybersecurity products can flag threats in data and applications in Amazon, Microsoft, Oracle, and Google public clouds.

Setback for Google

Wiz specializes in cloud-based cybersecurity. Its solutions help businesses to identify and eliminate vital risks on cloud platforms.

The Google-Wiz deal call-off is a major setback for Google. Wiz has a rich cloud security product portfolio that would have helped Google to compete with Microsoft’s security software products.

The tech giant has been building its cloud infrastructure and seeking clients. Last year, its cloud business generated over $33 billion in revenue. Although Google has grown its cloud business consistently in recent years, it’s under pressure to sustain this growth and attract more business during the AI boom.

Alphabet suffered another merger and acquisition blow after it walked away from a deal with digital marketing software firm, HubSpot.

The post Wiz Walks Out of $23 B Google Deal, Opts for IPO Instead appeared first on Tech Research Online.

News of German SAAS Ryte acquisition represents a significant change in the digital marketing landscape. The acquisition brings two powerhouses together to redefine enterprise SEO capabilities and website user experience.

Combined Expertise

Semrush has created a robust online visibility management platform. The SaaS platform allows businesses across the globe to optimize their websites for search engines. It provides a range of digital marketing services including content marketing, pay-per-click, social media campaigns, and competitive research campaigns.

Businesses that use Semrush also track results from their online marketing initiatives on the platform. Following the acquisition, Ryte and Semrush will combine their acquisition to achieve new levels of growth.

Ryte Founder, Andy Bruckschloegl said, “We are excited to join Semrush and advance our shared vision for the future of Website User Experience, as well as strengthen Semrush’s cutting-edge Enterprise SEO Platform.”

New Opportunities

Rytes expects its acquisition by Semrush to open new sales opportunities. The startup will be looking to leverage the extensive customer base that Semrush has to achieve this goal. The acquisition presents Ryte with new cross-selling and customer penetration opportunities.

“With Semrush, Ryte seeks to drive innovation, accelerate platform development, and amplify our global presence more rapidly than we could as a standalone company,” Bruckschloegl added.

Semrush sees the acquisition as an extension of its Enterprise SEO Platform. The SaaS company commits to help big companies enhance their online visibility, marketing operations, and productivity.

“We warmly welcome all Ryte employees to the Semrush family and look forward to capitalizing on the opportunities this acquisition brings,” Eugene Levin, Semrush President said.

Good Reputation

Ryte was founded in 2012. The SaaS company helps agencies and companies to optimize website experiences for users. The startup serves companies such as Bauhaus, Hilti, Allianz, and HomeToGo.

“We are entering an exciting phase, and I am immensely proud of the entire Ryte team, particularly my two co-founders, Marcus Tandler and Neils Dorje, as well as our CFO and COO, Jens Mittnacht. Their invaluable contributions have been key to achieving this important milestone for our future,” Bruckschloegl added.

Over the years, the company has built a positive image through its comprehensive suite that enhances search engine optimization, accessibility, compliance, performance, quality assurance, and sustainability for businesses of all sizes.

The post Semrush Expands Enterprise SEO Platform with Ryte Acquisition appeared first on Tech Research Online.

News of Google’s Wiz acquisition came days after Alphabet opted not to acquire HubSpot, a company whose market capitalization stands at over $24 billion.

The Wiz Advantage

Wiz was last valued at $12 billion. The cybersecurity startup partners with a range of cloud providers, including Amazon and Microsoft. Its clients include DocuSign and Morgan Stanley. The company has a workforce of 900 employees who work from the U.S, Asia, Europe, and Israel.

Should the Wiz Google acquisition deal go through, the cybersecurity startup will strengthen Google’s cloud-computing division significantly.

“There are two advantages of Google acquiring Wiz. One, cloud security is hot and allows Google to cut into AWS and Azure clients, and two, having Wiz would give them some consistently large workloads to monetize,” Constellation Research Founder and Principal Analyst, Ray Wang said.

Wedbush analysts agreed with these sentiments.

“For Google this would be a shot across the bow at Microsoft and Amazon, making a major bet on the cyber security space to complement its flagship GCP offering in the cloud. This would give Google an edge on a number of cloud deployments, and further monetize the cyber security cloud space with still less than 50% of the workloads not on the cloud globally.”

Boost to Google’s Portfolio

For decades now, Google’s main source of revenue has been online ads on YouTube, Google Search, and other platforms. The tech giant has been exploring additional services like security and cloud to generate more revenue.

“AI and Cybersecurity are the two biggest areas customers are investing their technology dollars. Google seeks to play in both areas. The bigger issue is that the IPO market has been really bad, this has created fewer new startups in enterprise, and makes existing companies with great revenue streams like Wiz attractive targets even at high valuations,” Wang added.

Cybersecurity is among the strategic, high-growth areas that attract tech giants like Microsoft and Google. With vulnerability to cyber attacks increasing among consumers, enterprises, businesses, and governments, demand for cybersecurity security has been on the rise. The Google-Wiz acquisition will enable Google to provide this service.

“This was the missing piece in Google’s portfolio and helps them provide cybersecurity as a service bundled with their cloud offerings. With AI it’s going to be a double-edged sword – enhancing cybersecurity but also possible to evade one. This is the big play and we shall see further M&A activity here between cloud, AI, and cybersecurity companies in the next two years,” Counterpart Research VP for Research and Partner, Neil Shah said.

Past Performance

Last year, Wiz posted $350 million in recurring revenue, up from $100 million it posted 18 months after its inception in 2020. Early this year, the startup raised $1 billion at a $12 billion valuation. If the acquisition deal is finalized, Google will be paying double the valuation. It will also be Google’s largest-ever acquisition.

The tech giant will pay close to $12 billion more than it paid to acquire Motorola Mobility in 2012. Wiz is among the rare non-AI startups to raise capital on a higher valuation this year. Most startups have suffered tech fatigue emanating from the low-interest rate environment.

In recent months, Google has acquired two other cybersecurity startups – Siemplify and Mandiant.

The post Google Eyes Cybersecurity Business with $23B Wiz Acquisition appeared first on Tech Research Online.