Google has announced its largest acquisition to date, agreeing to buy cybersecurity startup Wiz for $32 billion in an all-cash deal. This move signals Google’s strong commitment to cloud security at a time when cybersecurity threats and artificial intelligence (AI) advancements are growing rapidly.
If approved by regulators, this deal will surpass Google’s previous record-breaking purchase of Motorola Mobility for $12.5 billion in 2012.
Who is Wiz?
Wiz is a cloud security company that has experienced explosive growth since its founding in 2020. The company provides cybersecurity tools that help businesses detect and respond to security threats in cloud environments.
Founded by Assaf Rappaport, Ami Luttwak, Yinon Costica, and Roy Reznik, the team has roots in Unit 8200, Israel’s cyber intelligence division. Wiz quickly became a leader in cloud security, reaching $100 million in annual recurring revenue within just 18 months.
This acquisition didn’t happen overnight. Last summer, Google and Wiz were in talks for a potential $23 billion deal, but those discussions fell through. At the time, Wiz opted to pursue an initial public offering (IPO) instead. However, Google returned to the table with a bigger offer, ultimately securing the deal.
Why Google Wants Wiz
With cloud computing and AI reshaping industries, cybersecurity has become more critical than ever. Google Cloud competes with major players like Amazon Web Services and Microsoft Azure, both of which offer strong security products. By acquiring Wiz, Google strengthens its cybersecurity offerings and gains an edge in cloud security innovation.
According to Google, Wiz will continue to operate across multiple cloud platforms, including those of competitors like Amazon, Microsoft, and Oracle. This flexibility ensures Wiz’s customer base remains broad, even as it integrates into Google Cloud’s ecosystem.
The Bigger Picture for Tech Mergers
Wall Street analysts see this deal as a potential turning point for mergers and acquisitions in the tech sector. After a period of slow deal-making due to economic uncertainty and regulatory scrutiny, this acquisition could signal a return to bigger transactions in the industry.
Regulators will still review the deal, as concerns over monopolization in the tech industry remain a hot topic. However, some experts believe recent changes in government oversight could lead to a smoother approval process compared to previous years.
What Happens Next?
Google expects the deal to close in 2026, pending regulatory approval. Once the acquisition is complete, Wiz will become a key part of Google’s cloud security strategy. Its rapid innovation in cybersecurity, combined with Google’s resources, could lead to stronger protections for businesses in an increasingly digital world.
For Google, this acquisition is more than just a big purchase—it’s a strategic investment in the future of cloud security. With cyber threats evolving every day, Google is betting that Wiz will help it stay ahead of the curve.
