Wiz Acquisition Offer Shows Confidence in Israeli High-Tech

Since its inception, Israeli-founded cloud security startup Wiz has broken records, becoming the fastest-growing company in the world and securing a $1 billion funding round, the largest in the history of the local industry.

According to a report from the Wall Street Journal, this could be about to be acquired by GoogleAlphabet, Google’s parent company, for $23 billion. It would be the highest amount ever offered for an Israeli company and the largest deal in Google’s history, surpassing Mobileye Sale to Intel in 2017 for 15.3 billion dollars.

Seven years later, the record for the largest exit deal in Israel could reach $23 billion, and the timing has important implications for Israel’s high-tech industry. It would restore Israel’s reputation in the eyes of foreign investors thanks to Google’s vote of confidence after two years of political upheaval and war, and provide an infusion of cash to Israeli shareholders and employees.

Wiz is registered as an American company with approximately 900 employees, some of whom are based in the United States. During the protests against the judicial reform, CEO Assaf Rappaport took a clear stance against the reform, stating that the company would transfer its business accounts abroad as part of the reform, leaving only funds for routine operations such as salaries in Israel.

Some might try to link Wiz’s unique success to the health and strength of Israel’s high-tech sector, which has received positive signals despite warnings and concerns from entrepreneurs and investors about capital flight and the sector’s downward trends.

Rappaport may not appreciate serving the narrative that “everything is fine” with the acquisition announcement. Not to mention the calls from Prime Minister Benjamin Netanyahu or Finance Minister Bezalel Smotrich now seeking to offer their congratulations.

Some of Wiz’s founders – including Rappaport, Ami Luttwak, Roy Reznik and Yinon Costica – have shared business ventures in the past, starting with Unit 81 of the IDF’s Military Intelligence Directorate.

Rappaport, Luttwak, and Reznik co-founded Adallom in 2012, which was sold to Microsoft for $320 million, leading to Rappaport becoming head of the company’s cloud security division. In 2018, at just 34, he became Microsoft’s director of research and development, managing 1,500 employees.

The dream of creating a giant company began to take shape and, in 2020, he embarked on the adventure with Wiz, with the aim of going all the way and creating a public company potentially surpassing its rival Palo Alto Networks, founded by Israeli Nir Zuk, which is valued at $108 billion.

What will remain of these aspirations in the face of Google’s dazzling offer and the pressure from investors, most of whom are part of the biggest funds in Silicon Valley? Even if the company accepts the acquisition offer and goes “halfway” to becoming a large listed company, Wiz has already left its mark.