By Shivani Tanna in Bengaluru, Steven Scheer and Deborah Sophia

(Reuters) – Cybersecurity startup Wiz has walked away from a reported $23 billion deal to be acquired by Google-parent Alphabet and has chosen to pursue an initial public offering, according to a Wiz memo seen by Reuters.

“While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz,” CEO Assaf Rappaport said in the memo, without naming Google.

“Let me cut to the chase: our next milestones are $1 billion in ARR and an IPO,” he added.

Reuters reported earlier in July that Alphabet was in advanced talks to acquire Wiz for roughly $23 billion, citing a person familiar with the matter.

Wiz’s decision to call off the deal will be a setback for Google, which has been investing in its cloud infrastructure and focusing on winning clients for the cloud business that generated more than $33 billion in revenues last year.

The New York-headquartered company was supposed to be Alphabet’s biggest deal ever, and second big acquisition in the cybersecurity space, since its $5.4 billion purchase of Mandiant in 2022.

One of the fastest-growing software startups, Wiz raised $1 billion in a private funding round earlier this year, which gave it a valuation of $12 billion. The U.S.-Israeli startup had $350 million in revenue in 2023.

Wiz provides cloud-based cybersecurity solutions that help companies identify and remove critical risks on cloud platforms, with real-time threat detection and responses powered by artificial intelligence.

Google and Wiz did not immediately respond to Reuters’ requests for comment.