Alphabet,the parent company of Google,is in advanced talks to acquire cybersecurity startup Wiz for$23 billion,according to a source close to the company.This follows initial reports by The Wall Street Journal.

　　Wiz,founded in 2020,was approached a few weeks ago by Thomas Kurian,the head of Google’s cloud division.Negotiations have progressed quickly since then,and the parties have tentatively agreed on the purchase price.

　　However,a deal of this magnitude faces many hurdles and intricate details that need to be addressed,the source noted,though they did not specify what those hurdles are.The negotiations could take another week to 10 days to finalize and have a 50%chance of falling apart.

　　The offered price significantly exceeds Wiz’s last private valuation of$12 billion,achieved in May when the company raised$1 billion in a Series E funding round.

　　Wiz has demonstrated impressive growth.The company reached an annual recurring revenue(ARR)of$100 million just 18 months after its launch,making it one of the fastest-growing companies ever.In May,Wiz announced its ARR was around$350 million,and it has since accelerated to$500 million.The company aims to hit an ARR of$1 billion next year.

　　Despite its rapid growth and plans to go public,Wiz was not actively seeking a buyer until Google approached them.However,the synergy between Google Cloud and Wiz could provide strong revenue opportunities,allowing Wiz to leverage Google’s extensive customer base.

　　If the deal is finalized at$23 billion,it would value Wiz at 46 times its current ARR and 23 times its projected 2025 ARR.This is a substantial premium compared to Wiz’s main competitor,Palo Alto Networks,which is trading at just over 14 times its trailing 12 months’revenue.Google appears willing to pay nearly a 300%premium over Wiz’s closest comparable.

　　Wiz’s backers include prominent investors such as Andreessen Horowitz,Cyberstarts,Index Ventures,Insight Partners,and Sequoia.