Alphabet Inc., Google’s parent company, has announced its largest acquisition to date: it has acquired cybersecurity firm Wiz for $32 billion in an all-cash transaction.
The deal is a strategic move to bolster Google Cloud’s security offerings and enhance its competitiveness against industry giants like Amazon Web Services and Microsoft Azure.
Founded in 2020 by former members of Israel’s elite cyber intelligence unit 8200, Wiz has quickly emerged as a leading cloud security provider.
“This acquisition represents an investment by Google Cloud to accelerate two large and growing trends in the AI era: improved cloud security and the ability to use multiple clouds (multicloud),” Google wrote in a statement.
The company generates approximately $700 million in annual recurring revenue and offers a user-friendly platform that provides comprehensive security solutions across major cloud services, including AWS and Azure.
While the acquisition strengthens Google Cloud’s security capabilities, it is expected to face regulatory scrutiny from the Federal Trade Commission. Given the Biden administration’s focus on antitrust enforcement, there could be challenges ahead before the deal is finalized.
Following the announcement, Alphabet’s stock dropped 3.3%, closing at $158.93, as investors assessed the implications of the substantial investment and potential regulatory hurdles.
Google Cloud intends to integrate Wiz’s technology to provide an end-to-end security platform for businesses of all sizes. By automating security processes and lowering implementation costs, the acquisition aims to help organizations defend against emerging threats in an increasingly AI-driven world.
Pending regulatory approval, Wiz will officially become part of Google Cloud upon the deal’s closure, marking a major milestone in Alphabet’s ongoing expansion into cloud computing and cybersecurity.