Google, through its parent Alphabet, has sealed the acquisition deal of the cloud security startup Wiz in an all-cash deal worth $32 billion, the company announced on Tuesday. By closing this deal, Google has concluded the largest acquisition in its history.
The acquisition is still subject to regulatory approvals and other clearances before it can be finalized. Google’s largest previous acquisition was the purchase of Motorola Mobility for $12.5 billion back in 2011.
Under the deal, Wiz will continue to operate as an independent platform, working across all cloud providers, not just Google Cloud Platform. The company plans to expand its team and is expected to pursue additional acquisitions, which Wiz has been working on for the past year.
According to media reports, sources reveal that Wiz is currently generating $700 million in annual recurring revenue. The deal is being likened to the acquisition of LinkedIn by Microsoft, with Wiz maintaining a level of autonomy within Alphabet. (It’s worth noting that LinkedIn, while operating independently, has significantly increased its use of Microsoft services over time, making this comparison more meaningful than it might initially seem.)
This acquisition has been in the works for almost a year, with negotiations stalling before the deal was revived this week at a $30 billion valuation.
“Google Cloud and Wiz share a joint vision to make cybersecurity more accessible and simpler to use for organizations of any size and industry. Enabling more companies to prevent cyber attacks, including in complex business software environments, will help organizations minimize the cost, disruption, and hassle caused by cybersecurity incidents”, Thomas Kurian, the CEO of Google Cloud, said in a statement.
In a bit of backstory, Google had initially offered to acquire Wiz for $23 billion last year, but the talks broke down, reportedly due to concerns over antitrust issues, Wiz’s autonomy under Google Cloud, and the potential price tag. At the time, Wiz was valued at $12 billion following a $1 billion funding round.
Google’s interest in Wiz is driven by two key areas: bolstering its position in the enterprise cloud market, where it lags behind AWS and Microsoft Azure, and enhancing its security offerings, which currently lack the scale, growth, and impact of Wiz’s solutions. The acquisition also complements Google’s other big investment area: artificial intelligence (AI).
“The increased role of AI and the widespread adoption of cloud services have dramatically changed the security landscape, making cybersecurity more crucial than ever in defending against emerging risks and safeguarding national security,” Google highlighted in its announcement.
After the initial acquisition talks fell apart in 2024, Wiz ran a secondary sale at a $16 billion valuation, meaning this deal now represents a significant jump in value for the company. This is a huge win for Wiz’s investors, which include Sequoia, Cyberstarts, Index Ventures, Salesforce, Thrive Capital, Greenoaks, and many others.