Wiz rejects $23B bid from Google parent Alphabet: Employee rights

The cybersecurity firm Wiz has rejected a $23 billion acquisition offer from Alphabet, Google’s parent company. This decision means Wiz is foregoing what would have been Alphabet’s largest acquisition to date, choosing instead to pursue a stock market flotation.

Details

Alphabet had been in advanced discussions with Wiz as it sought to catch up with rivals Microsoft and Amazon in the hyper-competitive cloud services market.

• The talks began after Wiz raised $1 billion from venture capital investors earlier this year.
• If finalized, the deal would have surpassed Alphabet’s previous record acquisition of Motorola for $12.5 billion.
• Wiz, founded in March 2020 by alumni of Israel’s cyberintelligence unit, has rapidly grown and claims that 40% of Fortune 100 companies are its clients.
• The startup provides cybersecurity software for cloud computing and has notable customers such as BMW, Slack, and Salesforce.
• Wiz collaborates with major cloud providers, including Amazon, Microsoft, and Google.

Despite growing cloud sales, Google has struggled to compete with Microsoft and Amazon in the cloud services market. The addition of Wiz could have enhanced Google’s cloud offerings and provided a competitive edge.

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Rejection of the Offer

Wiz has opted to continue its independent growth path, aiming for an initial public offering (IPO) and significant revenue milestones.

• In an internal email to employees, Wiz stated, “While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz.”
• Assaf Rappaport, Wiz’s CEO, outlined the company’s next targets of reaching $1 billion in annual recurring revenue and pursuing an IPO. He expressed confidence in this decision, citing the exceptional team at Wiz.
• “Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice,” Rappaport said. “The market validation we have experienced following this news only reinforces our goal – creating a platform that both security and development teams love.”

Who would have paid severance if Alphabet didn’t keep certain Wiz employees?

If Alphabets’ acquisition of Wiz resulted in Wiz employees losing their jobs, the responsibility for providing full severance pay would typically lie with Wiz, the “seller” of the business.

Had Alphabet provided you with an employment offer that you had a valid reason to decline (e.g., different hours or pay), you would have been entitled to full severance from Wiz. Even without a valid reason, you still would have received severance, although it’s very likely that it would have only been your minimum entitlements.

WATCH: Employment lawyer Lior Samfiru explains the rights workers have when their employer sells the business on an episode of the Employment Law Show.

LEARN MORE
• Employer sold the business in B.C.? Know your rights to severance
• Rights to severance in Alberta when your employer sells the business
• Sale of business in Ontario: Rights to severance

How is severance pay calculated?

Severance for non-unionized employees in Canada can be as much as 24 months’ pay.

This includes individuals working full-time, part-time, or hourly in B.C., Alberta, and Ontario. The amount of compensation you are entitled to is calculated using several factors, including:

To figure out how much you could be owed, use our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their severance entitlements.

If your company doesn’t provide you with the correct amount, you have been wrongfully dismissed and should seek legal counsel immediately. Samfiru Tumarkin LLP regularly resolves wrongful dismissal claims and can help you secure proper severance.

LEARN MORE
• Severance for provincially regulated employees
• Rights to severance for tech sector staff
• Severance packages in mass layoffs

Do employees still have the same workplace rights with a non-Canadian owner?

Yes. Foreign-based companies must adhere to either provincial or federal employment laws, depending on the province where the employees work and the industry the employer operates in.

Received a job offer? Speak with an employment lawyer

Before accepting a new employment contract, have the experienced employment law team at Samfiru Tumarkin LLP review the agreement to make sure your workplace rights are protected.

Our lawyers in B.C., Alberta, and Ontario have successfully represented tens of thousands of non-unionized individuals.

We can help you better understand the terms of the contract and advise you on how best to navigate the situation.