Google buys Wiz for $32B in its biggest deal ever
What's the story
In a stunning move, Alphabet, Google's parent company, has acquired Israeli cybersecurity start-up Wiz for an eye-watering $32 billion.
The deal will mark Alphabet's biggest acquisition to date and is largely focused on bolstering its cloud services.
The move comes as part of Alphabet's efforts to strengthen its position against Amazon Web Services (AWS) and Microsoft Azure in the cloud computing space.
Deal details
Wiz's AI-driven cybersecurity solutions to boost Google's cloud business
The acquisition is subject to regulatory and other approvals.
Google's last biggest acquisition was Motorola Mobility, which it bought for $12.5 billion in 2011.
The all-cash deal is anticipated to bolster Google's cloud business with Wiz's AI-driven cybersecurity solutions that enable companies to mitigate critical risks.
The strategic move comes as the industry increasingly transitions to generative AI services like ChatGPT, boosting Google's competitiveness in the space.
Failed attempt
Google's previous acquisition attempt for Wiz fell through
In 2024, a strict regulatory climate made it difficult for many big-ticket deals, including Google's earlier acquisition attempt for Wiz.
But now, with a new US President in office and a more lenient approach to antitrust policies expected under the Trump administration, Wall Street expects a more conducive environment for big tech mergers that may have otherwise been stalled.
Wiz is one of the fastest-growing software start-ups and was valued at $12 billion in a funding round last May.
Strategic alignment
Google's acquisition of Wiz aligns with its strategic goals
The acquisition of Wiz fits perfectly with Google's ambitions to drive growth in two important areas: enterprise cloud and security.
In enterprise cloud, Google is lagging behind AWS and Microsoft Azure. Meanwhile, in security, its offerings don't have the scale and growth potential Wiz offers.
The move also puts Google in a position to balance its wider strategic investments in AI with cybersecurity.
Future plans
Wiz to continue operating independently post-acquisition
Post-acquisition, Wiz will be integrated into Google's cloud division but its products will remain available across all major cloud platforms.
Wiz will also continue to operate as an independent platform supporting all cloud providers, not just Google Cloud.
The company plans to expand its workforce and pursue additional acquisitions, building on efforts it has undertaken over the past year.