Google has officially announced the acquisition of cloud security startup Wiz. The deal is valued at $32 billion and will be paid in cash, marking the largest acquisition in Google’s history. Wiz will continue to operate as an independent platform, maintaining the ability to work with all major cloud service providers, not just Google Cloud.
The new ownership plans include expanding Wiz’s workforce and potentially acquiring additional companies, aligning with strategies Wiz has pursued over the past year. Unofficial reports suggest that Wiz currently boasts an annual recurring revenue of $700 million. The structure of the deal has drawn comparisons to Microsoft’s acquisition of LinkedIn: while Wiz will retain significant autonomy, there is a possibility of deeper integration with Google services over time. Prior to this, Google’s largest acquisition was its $12.5 billion purchase of Motorola Mobility in 2011.
Strengthening Google Cloud and Security
Last year, Google made an earlier bid of $23 billion to acquire Wiz. However, those talks reportedly collapsed due to concerns over antitrust compliance, disagreements regarding Wiz’s independence, and possibly the price. Before these negotiations, Wiz had raised $1 billion at a $12 billion valuation. Afterward, the company secured additional funding at a $16 billion valuation, with speculation suggesting another round of funding could follow at an even higher valuation.
Google aims to leverage the acquisition to reinforce its cloud business, which still trails behind competitors like AWS and Microsoft Azure. The move also bolsters Google’s presence in the cloud security market, an area where Google offers several products, though none matching the scale of Wiz. NIX Solutions adds that Wiz’s growth trajectory is notable: last year, its profits exceeded $500 million, with projections indicating a potential increase to $1 billion this year.
Following last year’s failed negotiations, Wiz CEO Assaf Rappaport stated that he did not rule out future deals with Google. He emphasized that Wiz itself declined the earlier offer, describing it as “the most difficult decision in history,” yet ultimately “the right choice.” With this acquisition now finalized, we’ll keep you updated as more developments or potential integrations emerge.