Google Acquires Wiz for $32 Billion, Setting a New Record
In a landmark deal, Google acquires Wiz for $32 billion in an all-cash transaction. This acquisition makes Wiz, a cloud security startup, the most expensive purchase in Google’s history. The deal includes an additional $1 billion in retention bonuses, ensuring that Wiz’s 1,700 employees remain onboard post-acquisition.
Why Google Wants Wiz in Its Portfolio
Wiz, currently generating $700 million in annual recurring revenue, has become a major player in cloud security. With this acquisition, Google aims to strengthen its enterprise cloud business and compete with AWS and Microsoft Azure.
Despite the buyout, Wiz will remain an independent platform, continuing to support all cloud providers, not just Google Cloud. The startup also plans to expand its workforce and pursue additional acquisitions to accelerate growth.
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Google Cloud CEO Leads the Deal
Thomas Kurian, CEO of Google Cloud, played a pivotal role in securing the deal. He highlighted Google’s mission to enhance cybersecurity accessibility.
“Google Cloud and Wiz share a joint vision to make cybersecurity more accessible and simpler to use for organizations of any size and industry,” Kurian stated.
Assaf Rappaport, CEO of Wiz, led his company through negotiations, securing a deal that more than doubles its $16 billion valuation from a recent secondary sale.
Regulatory Approval and Market Implications
The acquisition still requires regulatory approval, with finalization expected in 2026. A shift in the U.S. regulatory environment could favor big tech mergers, making this deal more viable than it was last year when Google initially offered $23 billion for Wiz.
Google’s move comes at a time when AI and cloud security are evolving rapidly. The company sees Wiz as a way to bolster its cloud security division while also hedging against fluctuations in AI investments.
For Wiz’s investors—including Sequoia, Cyberstarts, and Salesforce—the acquisition represents a massive return on investment.
With Google acquiring Wiz, the cloud security landscape is set for a significant shift, reinforcing the growing importance of cybersecurity in the AI-driven era.