BY Richard Summerfield
On Tuesday, Google LLC announced it had signed a definitive agreement to acquire Wiz, Inc., a leading cloud security platform for $32bn, in an all-cash transaction. The deal will be the company’s biggest-ever acquisition.
Alphabet, Google’s parent company, has been eyeing Wiz for a while. In 2024, it was in discussions to acquire Wiz for $23bn. However, Wiz decided to withdraw from the deal due to worries about federal regulatory resistance and its intentions to pursue an initial public offering. The companies are seemingly less concerned about potential regulatory hurdles under the Trump administration and its more merger-friendly outlook. The administration’s attitude toward Big Tech may, however, be a cause for concern. Andrew Ferguson, the new Federal Trade Commission chairman, has been outspoken about his resolve to keep Big Tech under control.
In light of these concerns, according to the Financial Times, Alphabet, has agreed to a reverse termination fee of $3.2bn, which is rumoured to be among the highest ever agreed. If the deal wins regulatory approval and meets several conditions spelled out in the agreement, Google and Wiz expect the deal to close in 2026. Upon completion, Wiz will join Google Cloud.
Wiz was founded in 2020 and has rapidly become one of the fastest-growing software companies in the world. Its leadership team has a history of success in cloud start-ups: Wiz co-founder and chief executive Assaf Rappaport and several members of his executive team were also behind Adallom – the cloud security startup that Microsoft bought for $320m in 2015 and later rebranded as Microsoft Defender for Cloud Apps.
“From its earliest days, Google’s strong security focus has made us a leader in keeping people safe online,” said Sundar Pichai, chief executive of Google. “Today, businesses and governments that run in the cloud are looking for even stronger security solutions, and greater choice in cloud computing providers. Together, Google Cloud and Wiz will turbocharge improved cloud security and the ability to use multiple clouds.”
“Google Cloud and Wiz share a joint vision to make cybersecurity more accessible and simpler to use for organizations of any size and industry,” said Thomas Kurian, chief executive of Google Cloud. “Enabling more companies to prevent cyber attacks, including in very complex business software environments, will help organizations minimize the cost, disruption and hassle caused by cybersecurity incidents.”
“Wiz and Google Cloud are fully committed to continue supporting and protecting customers across all major clouds, helping keep them safe and secure wherever they operate,” said Mr Rappaport. “This is an exciting moment for our company, but an even more important one for customers and partners, as this acquisition will bolster our mission to improve security and prevent breaches by providing additional resources and deep AI expertise.”
The deal eclipses the current largest acquisition in Google’s 26-year history – the $12.5bn purchase of Motorola Mobility in 2012. The deal for Wiz would also go down as the biggest-ever cyber security acquisition and rank among the 20 most expensive takeovers of a software company in history, according to Mergermarket.
News: Alphabet to buy Wiz for $32 billion in its biggest deal to boost cloud security