Google to buy cybersecurity startup Wiz for $32 billion
Alphabet Inc., the parent company of Google, has announced plans to acquire cybersecurity startup Wiz for approximately $32 billion in cash.
Accordig to Barron's, this acquisition marks Alphabet's largest purchase to date and aims to bolster its cloud security offerings amidst intensifying competition with Amazon Web Services (AWS) and Microsoft Azure.
Founded in 2020 by Assaf Rappaport as the co-founder, Wiz has rapidly ascended in the cybersecurity sector, achieving a valuation of $30 billion. The company's innovative security platform is designed to enhance cloud security across major services, including AWS and Microsoft Azure.
Wiz's current CEO Assaf Rappaport rejected Google's $23 billion buyout offer in 2024 calling the offer "humbling".
Accoring to CapstonePartners, in May 2024, Wiz raised $1 billion in a Series E funding round, co-led by prominent venture capital firms such as Andreessen Horowitz, Lightspeed Venture Partners, and Thrive Capital, which placed the company's valuation at $12 billion at that time.
The integration of Wiz's AI-driven cybersecurity solutions is expected to enhance Google Cloud's security capabilities, providing more robust protection for its clients.
Notably, Wiz will continue to support other major cloud services after the acquisition, maintaining its commitment to a multi-cloud approach.
This strategic move to buy Wiz underscores Alphabet's commitment to strengthening its position in the cloud computing market by addressing the growing importance of robust cloud-native security solutions. As enterprises adopt more complex multicloud environments, the demand for comprehensive security measures has become paramount.
According to Reuters reports, the acquisition is subject to regulatory approval and is anticipated to close in 2026. Industry analysts view this development as a significant step in enhancing cloud security and a testament to the critical role cybersecurity plays in today's constantly changing digital landscape.
