Finally, Google to acquire cybersecurity startup, Wiz for $32bn

Google has signed a definitive agreement to acquire Wiz, a leading cloud security platform, for $32 billion, subject to closing adjustments, in an all-cash transaction. This is the biggest acquisition in the tech giant’s history.

The deal will still need regulatory and other approvals before closing.

According to a blog post by Google, today, once the transaction is closed, Wiz will join Google Cloud. The 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 (multi-cloud).

The deal is also the latest by Google to bolster its cybersecurity offerings. Google’s interest in the cybersecurity industry has been rising since last year’s global CrowdStrike outage affected operations across industries, prompting companies to invest heavily in safeguarding their online domains.

The price is much higher than the roughly $23 billion Google had offered for Wiz last year before antitrust worries forced the startup to shelve the deal.

Wiz delivers an easy-to-use security platform that connects to all major clouds and code environments to help prevent cybersecurity incidents. Organizations of all sizes, from start-ups and large enterprises to governments and public sector organizations, use Wiz to protect everything they build and run in the cloud.

The company presently serves major cloud providers such as Amazon Web Services, Microsoft’s Azure, Oracle, Google Cloud, Morgan Stanley, BMW and luxury powerhouse LVMH.

This acquisition has been on-again and off-again for nearly a year. Wiz was valued at $12 billion in a funding round last May. Last year, Google offered to buy Wiz for $23 billion, but the talks fell apart, sources say over concerns about antitrust issues.

After the Google deal collapsed, Wiz said in an internal memo that it would focus on an initial public offering and higher recurring revenue. Not long after the deal initially fell apart in 2024, Wiz ran a secondary sale at a $16 billion valuation, meaning this acquisition doubled that valuation.

This, analysts believe is predicated on its growing revenue. The company crossed the $500 million ARR mark last year and is on track to double that this year to $1 billion.

According to TechCrunch, that’s a huge windfall for Wiz’s investors, which include the likes of Sequoia, Cyberstarts, Index Ventures, Salesforce, Thrive Capital, Greenoaks and around two dozen others.

According to Google’s blog announcement, the combination of Google Cloud and Wiz will:

• Boost the adoption of multicloud security and, as a result, customers’ ability to use multiple clouds; further spurring innovation in and the adoption of cloud computing.
• Vastly improve how security is designed, operated and automated — providing an end-to-end security platform for customers, of all types and sizes, in the AI era;
• Scale cybersecurity teams by providing them with an automated security platform;
• Lower customers’ cost of implementing and managing security controls;
• Protect against new threats emerging due to the advancement of AI, prevent breaches, and help organizations respond to breaches much more efficiently;

Google’s CEO, Sundar Pichai believes that a partnership between both companies will turbocharge improved cloud security and the ability to use multiple clouds. “From its earliest days, Google’s strong security focus has made us a leader in keeping people safe online. Today, businesses and governments that run in the cloud are looking for even stronger security solutions, and greater choice in cloud computing providers”, he said.

Similarly, Assaf Rappaport, Co-Founder & CEO of Wiz described the deal as an exciting moment for our company. “This acquisition will bolster our mission to improve security and prevent breaches by providing additional resources and deep AI expertise”. he added.

Google is planning an investor call later today to share more details.

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