On Tuesday, Google (GOOGL) made headlines by revealing that it has signed a definitive agreement to acquire the Israeli cybersecurity startup Wiz for a staggering $32 billion in an all-cash transaction. If finalized, this acquisition would mark Google's largest purchase to date, surpassing its previous record when it acquired Motorola Mobility for $12.5 billion in 2011.
In a blog post, Google Cloud expressed its enthusiasm about the acquisition, stating, “Together with Wiz, we are excited about the potential to provide customers with a comprehensive security platform that protects modern IT environments.” This partnership is poised to enhance Google’s cloud infrastructure, facilitating the evolution of multicloud cybersecurity through a unified security platform that merges Wiz’s Cloud Security Platform with Google Security Operations.
Google emphasized that this acquisition is a strategic investment aimed at accelerating two significant trends in the era of artificial intelligence: enhanced cloud security and the adoption of multicloud solutions. The new platform will also integrate technology from Mandiant, a cybersecurity consultancy acquired by Google for $5.4 billion in 2022.
Despite the acquisition, Wiz’s products will remain accessible across all leading cloud platforms, including Amazon Web Services (AWS), Microsoft Azure, and Oracle Cloud. This ensures that customers can continue to benefit from Wiz's innovative solutions no matter their cloud preference.
This isn’t the first time Google has pursued Wiz. Back in July 2024, Google entered negotiations to acquire the company for approximately $23 billion, but Wiz opted to pursue an initial public offering (IPO) instead. Ultimately, that IPO did not materialize, paving the way for this recent acquisition.
Founded in 2020 by Assaf Rappaport, along with co-founders Yinon Costica, Roy Reznik, and Ami Luttwak, Wiz has rapidly gained recognition in the tech industry. The company has branded itself as the world's fastest-growing startup in cybersecurity, achieving an impressive $100 million in annual recurring revenue within just 18 months of operation. Notably, Rappaport, Reznik, and Luttwak previously sold their first cloud security startup, Adallom, to Microsoft for $320 million in 2015.
If the acquisition is completed, it could signal a significant shift in the competitive landscape of major tech companies. According to Wedbush analyst Dan Ives, this deal would serve as “a shot across the bow at other big tech stalwarts,” particularly Microsoft and Amazon, who are both key players in the cloud security arena. Ives noted that Google is making a substantial investment in the cybersecurity sector to enhance its cloud offerings, potentially giving it a competitive edge in various cloud deployments.
Wedbush anticipates that Google Cloud could develop Wiz into a billion-dollar cybersecurity division over the coming years, positioning Wiz as the leading cloud-native application protection platform in the industry. Furthermore, with the departure of former chair Lina Khan from the FTC, the acquisition could pave the way for a new wave of mergers and acquisitions across the tech sector. Ives remarked, “With an arms race on the cloud and AI fully underway, Big Tech stalwarts will continue to be aggressive on M&A and not shy away due to regulatory worries in our view.”
