Google Acquires Cybersecurity Firm Wiz for $32 Billion in Largest-Ever Deal

Highlights

Google acquires cybersecurity firm Wiz for $32 billion, marking its largest-ever deal to boost cloud security and innovation, pending regulatory approval.

Google's parent company, Alphabet, has secured its biggest acquisition to date, agreeing to purchase New York-based cybersecurity firm Wiz for $32 billion. This deal, which will integrate Wiz into Google Cloud, marks Alphabet's second attempt to acquire the fast-growing firm. Talks initially stalled last year at a lower $23 billion valuation.

Founded in Israel, Wiz has quickly become a key player in the cloud cybersecurity space, partnering with major companies like Microsoft and Amazon. It was valued at $12 billion in May 2024, and that figure later rose to $16 billion after an employee equity offering later that year. The company had been working toward an IPO after its previous acquisition attempt fell through.

Should the deal pass regulatory approval, it will surpass Google's previous record, the $12.5 billion spent on acquiring Motorola Mobility in 2012.

“We expect this change to enable us to execute and innovate even faster,” said Assaf Rappaport, cofounder and CEO of Wiz, in a statement. “Becoming part of Google Cloud is like strapping a rocket to our backs: it will accelerate our rate of innovation beyond what we could achieve as a standalone company.”

The initial deal fell apart last year due to concerns from Wiz’s board and investors over potential antitrust issues. While the new acquisition is still under regulatory review, Alphabet and Wiz are hopeful that the current U.S. administration, along with the newly appointed Federal Trade Commission (FTC) chair Andrew Ferguson, will take a more lenient stance. However, Ferguson has previously made it clear that big tech will continue to face strict scrutiny, particularly regarding antitrust matters. Notably, he is also overseeing ongoing investigations into Microsoft.

To mitigate any antitrust concerns, Google has confirmed that Wiz’s products will remain available across other cloud platforms, including Amazon Web Services, Microsoft Azure, and Oracle Cloud. "Wiz needs to remain a multicloud platform," Rappaport emphasized. Additionally, the Google Cloud Marketplace will continue offering a range of other security services beyond those provided by Wiz.

This acquisition comes amid ongoing antitrust battles for Google, which is currently facing two lawsuits from the U.S. Department of Justice related to its search engine and digital advertising practices. While Google lost the first case, an appeal is in progress, and the outcome of the second case is still pending.

The Wiz acquisition is part of Google's broader strategy to enhance its cloud security offerings. In recent years, Google has acquired several cybersecurity firms, including Siemplify for $500 million and Mandiant for $5.4 billion, with the latter gaining prominence for its role in uncovering the SolarWinds hack. Bringing Wiz into the fold is seen as a strategic move to strengthen Google Cloud's cybersecurity capabilities, especially in response to Microsoft’s ongoing challenges with security.