Summary:
Google acquires Wiz for $32 billion in an all-cash deal, marking its largest acquisition to date.
The acquisition aims to enhance cloud security amid rising AI threats.
Wiz previously rejected a $23 billion offer in favor of pursuing an IPO.
Founded in 2020, Wiz achieved $100 million in annual recurring revenue in just 18 months.
Wiz products will remain available on Amazon Web Services, Microsoft Azure, and Oracle Cloud.
Google Acquires Wiz for $32 Billion
Google has officially signed a "definitive agreement" to acquire Wiz, a New York-based cloud security startup, for an astounding $32 billion in an all-cash deal. This acquisition marks Google's largest-ever purchase and aims to enhance its cloud security offerings amid rising AI and cybersecurity threats.
According to Google, the deal is expected to close by 2026. The tech giant stated, "Google Cloud is a leader in cloud infrastructure, with deep AI expertise and a track record of industry-leading security innovation." Integrating Wiz’s solutions into Google Cloud is anticipated to enhance scalability and benefit customers across all major cloud platforms.
A Change of Heart
The acquisition follows a previous situation where Wiz reportedly turned down a $23 billion offer from Google in July, opting instead to pursue an initial public offering (IPO). Co-founder Assaf Rappaport acknowledged the difficulty of rejecting such offers in a memo to employees. At that time, Wiz was focused on reaching $1 billion in annual recurring revenue.
Founded in 2020, Wiz has quickly established itself in the cloud security space, achieving $100 million in annual recurring revenue within just 18 months. Its product portfolio includes prevention, active detection, and response tools that are attractive to larger firms, positioning it as a competitor to Microsoft in the security software market.
The Future of Wiz Under Google
Rappaport expressed optimism about the acquisition, stating, "Becoming part of Google Cloud is effectively strapping a rocket to our backs: it will accelerate our rate of innovation faster than what we could achieve as a standalone company." Wiz’s products will remain available on competing platforms, including Amazon Web Services, Microsoft Azure, and Oracle Cloud.
Despite potential government scrutiny regarding the acquisition, there is optimism on Wall Street regarding the deal's approval under the new administration, especially as Google continues to navigate antitrust challenges related to its online search dominance.
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