After a long period of uncertainty and stagnation, Google’s blockbuster $32 billion acquisition of Israeli cybersecurity firm Wiz may be the spark that reignites investor confidence in the IPO and mergers and acquisitions (M&A) markets. Amid rising demand for AI-powered services and more secure cloud operations, the deal signals renewed momentum in a sector where caution had largely prevailed.
A Market Waiting to Reopen
The deal marks Google’s largest acquisition ever — a dramatic follow-up to an earlier $23 billion bid that had failed to materialize. Until now, Wiz had signaled plans to go public, making the acquisition a surprise pivot. But it may also serve as a bellwether. Activity in both IPOs and M&A has been sluggish since its 2021 peak, but analysts suggest that a thaw is underway.
Signs of Movement
In recent months, several companies have edged back into public markets. SailPoint returned to the IPO scene in February. CoreWeave, a major reseller of Nvidia’s AI chips, is planning a massive IPO targeting $2.7 billion in proceeds. StubHub filed for its own IPO just last week. These moves, coupled with Google’s aggressive bet on cybersecurity, are giving markets a long-awaited jolt.
Cybersecurity: The Market’s New Power Play
If there’s one industry positioned to benefit most from this resurgence, it’s cybersecurity. The shift toward cloud infrastructure and AI-powered platforms has created a vast surface area vulnerable to cyber threats — and companies are scrambling to fortify it.
The AI Effect
Since the advent of ChatGPT and similar tools, malicious actors have found new vectors for attacks. Phishing attempts have grown more sophisticated, and businesses have faced mounting pressure to adapt or risk catastrophic breaches. According to Neil Barlow, a partner at Clifford Chance, “Cybersecurity is no longer optional — it’s essential to keeping a business alive.”
A Wave of Deals on the Horizon
Google’s acquisition of Wiz gives it a significant leg up in cloud security, potentially outpacing rival Amazon Web Services in key areas. This move may push AWS to respond with acquisitions of its own. Analysts point to companies like Aqua Security, Orca Security, and Sysdig as possible targets.
IPO Pipeline: Ready for Liftoff?
While Wiz’s buyout may have removed one high-profile IPO from the pipeline, it could pave the way for others to move forward. Experts expect a more active second half of the year, particularly among cybersecurity players.
Startups to Watch
- Proofpoint — A leading phishing and malware defense provider, currently owned by Thoma Bravo. An IPO is reportedly under consideration for 2025.
- Illumio — Known for data center and cloud security, and a two-time member of CNBC’s Disruptor 50 list. Analysts suggest it’s well-positioned for a public debut.
- Netskope — Offering cloud-based security, the firm is seen as a likely candidate for a 2025 IPO, driven in part by pressure from long-term investors seeking liquidity.
- Snyk — A developer-centric security startup that has reached $300 million in annual recurring revenue and hinted at a 2025 IPO. Last valued at $7.4 billion.
A Crossroads for the Tech Sector
The critical question now: is this a moment of genuine resurgence, or just a brief pulse in an otherwise stagnant market? Brianne Lynch of EquityZen notes that companies may still hesitate, unsure whether to strike now or wait for more stability.
But one thing is clear — the Wiz acquisition has added new energy to the conversation. With AI fueling demand for more secure cloud environments, and tech giants ready to spend, the conditions may finally be aligning for a new chapter in IPOs and strategic deals.
