Alphabet Acquires Wiz, a Fast-Growing Israeli Cybersecurity Firm
Google’s Largest-Ever Acquisition
Google’s parent company, Alphabet, has announced its largest-ever acquisition, entering into a deal to buy New York-based cybersecurity firm Wiz, making it a part of its Google Cloud division. This is the company’s second attempt to buy Wiz after talks stalled last year at a lower $23 billion evaluation.
Wiz: A Fast-Growing Israeli-Founded Startup
Wiz is a fast-growing Israeli-founded startup that works with companies like Microsoft and Amazon to provide cloud-based cybersecurity solutions. The company was valued at $12 billion in May 2024, which reportedly climbed to $16 billion later in the year in an equity offering to employees, and has been working towards an initial public offering (IPO) in the months since the previous acquisition fell through.
Largest Acquisition in Google’s History
Should the deal receive regulatory approval, it will easily outsize the $12.5 billion paid by Google for Motorola Mobility in 2012.
Google’s M&A Strategy in Focus
Google is currently embroiled in two separate antitrust lawsuits with the Justice Department over its search engine and digital advertising businesses. It lost the first but is appealing the ruling, and a final decision is still awaited on the second.
Building a Stronger Cloud Security
The Wiz purchase would be the latest of several acquisitions that Google has made in recent years as it attempts to bolster security for its cloud computing customers. In 2022, Google purchased two cybersecurity firms — Siemplify and Mandiant — for $500 million and $5.4 billion, respectively, with the latter company best recognized for uncovering the SolarWinds hack. Adding Wiz to that mix feels like a targeted effort to tighten Google’s cloud protections in the face of Microsoft’s less-than-stellar cybersecurity reputation.
Conclusion
The acquisition of Wiz by Alphabet’s Google Cloud division is a significant move to strengthen the company’s cybersecurity capabilities, particularly in the cloud computing space. With Wiz’s expertise in cloud-based cybersecurity solutions, Google is poised to become a major player in the market, giving it an edge over competitors like Microsoft.
FAQs
Q: What is Wiz, and what does it do?
A: Wiz is a fast-growing Israeli-founded startup that provides cloud-based cybersecurity solutions to companies like Microsoft and Amazon.
Q: How much is Wiz valued at?
A: Wiz was valued at $12 billion in May 2024 and increased to $16 billion later in the year.
Q: Why is Google acquiring Wiz?
A: Google is acquiring Wiz to bolster its cloud security capabilities and compete with Microsoft in the market.
Q: How much did Google pay for Wiz?
A: The acquisition amount has not been disclosed, but it is reportedly larger than the $12.5 billion paid by Google for Motorola Mobility in 2012.
