Google seals record-breaking $32 billion Wiz acquisition
Tech giant’s biggest-ever deal aims to strengthen cloud security dominance.
Google’s parent company, Alphabet Inc., has agreed to acquire Israeli-founded cybersecurity startup Wiz for at least $32 billion, marking the largest acquisition in the tech giant’s history. The deal, announced Tuesday morning, underscores Google’s intensified efforts to bolster its cloud security capabilities and compete with Microsoft and Amazon in the highly competitive enterprise cloud market.
The acquisition follows previous negotiations between Google and Wiz that fell apart last year over antitrust concerns. At the time, Wiz rejected a $23 billion offer, citing potential regulatory hurdles and opting instead to pursue an initial public offering (IPO). However, with a new administration in Washington, the regulatory climate may have shifted in Google’s favor, helping pave the way for the blockbuster transaction.
"From its earliest days, Google’s strong security focus has made us a leader in keeping people safe online," said Sundar Pichai, CEO of Google. "Today, businesses and governments that run in the cloud are looking for even stronger security solutions, and greater choice in cloud computing providers. Together, Google Cloud and Wiz will turbocharge improved cloud security and the ability to use multiple clouds."
Assaf Rappaport, Co-Founder and CEO of Wiz: "Wiz and Google Cloud are fully committed to continue supporting and protecting customers across all major clouds, helping keep them safe and secure wherever they operate. This is an exciting moment for our company, but an even more important one for customers and partners, as this acquisition will bolster our mission to improve security and prevent breaches by providing additional resources and deep AI expertise."
At $32 billion, this is not only Google’s largest acquisition but also the biggest deal in cybersecurity history. Wiz, founded in 2020 by former Microsoft and Adallom executives Assaf Rappaport, Ami Luttwak, Yinon Costica, and Roy Reznik, has quickly risen to prominence, securing major Fortune 100 clients and becoming one of the fastest-growing cloud security companies.
The acquisition aligns with Google’s broader strategy to expand its cybersecurity portfolio, following its $5.4 billion purchase of Mandiant in 2022. Despite significant investments in security, Google Cloud remains a distant third behind Amazon Web Services (AWS) and Microsoft Azure. The addition of Wiz’s advanced cloud security platform, which seamlessly integrates with AWS and Azure, could give Google a much-needed edge in the enterprise market.
Regulatory Scrutiny Expected
While the Trump administration is generally viewed as more favorable toward large-scale mergers, the deal will likely face scrutiny from the Federal Trade Commission (FTC). The agency’s new chair, Andrew Ferguson, has maintained merger review guidelines that could still present challenges for Alphabet’s acquisition plans. Given Wiz’s key role in the cybersecurity industry and its extensive integrations with multiple cloud providers, regulators may examine whether the acquisition could stifle competition.
For Wiz, the decision to sell marks a shift in strategy. Just last year, CEO Assaf Rappaport publicly dismissed acquisition talks, positioning Wiz as an independent company with IPO ambitions. The startup had recently raised $1 billion at a $12 billion valuation, making its rapid ascent to a $32 billion deal even more remarkable. The new offer, significantly higher than Google’s previous bid, may have simply been too good to refuse.
As part of the deal, Google will also offer retention bonuses worth up to $1 billion to Wiz employees, ensuring continuity in leadership and talent retention.
The Bigger Picture: Tech Giants Battle for Cybersecurity Dominance
The acquisition highlights the intensifying battle among tech giants to dominate the cloud security market. Microsoft, AWS, and Google have all been aggressively expanding their security portfolios, recognizing that robust cybersecurity offerings are now critical to securing enterprise clients. In this environment, losing Wiz to a competitor could have been a major setback for Google.
With this acquisition, Google is making its boldest move yet to close the gap with Microsoft and AWS in cloud security. The coming months will determine whether regulatory approvals go smoothly or if Alphabet will have to fight to keep the deal alive. Either way, the acquisition cements Wiz’s status as one of the most valuable cybersecurity startups ever and sets the stage for a new era in enterprise security.
