- Google’s $32 billion acquisition of Wiz, its largest ever, aims to enhance Google Cloud’s security offerings against AI threats, integrating the startup’s solutions by 2026 while maintaining compatibility with Amazon Web Services, Microsoft Azure, and Oracle Cloud.
- Wiz, founded in 2020, hit $100 million in annual recurring revenue in 18 months, and its rejection of a $23 billion Google offer in July – due to antitrust and investor concerns – paved the way for this bigger deal, surpassing its initial IPO ambitions.
- The acquisition strengthens Google’s competition with Microsoft in cloud security, leveraging Wiz’s proven portfolio in prevention, detection, and response, alongside Google’s AI and infrastructure expertise, to serve large enterprises globally.
Google’s (GOOG) $32 billion all-cash acquisition of Wiz, a New York-based cloud security startup, marks its largest-ever deal, aimed at bolstering its cloud business against rising AI-driven threats. Announced on Tuesday, the agreement integrates Wiz into Google Cloud, leveraging the search giant’s leadership in infrastructure and AI expertise to enhance security offerings across major platforms like Amazon (AMZN) Web Services, Microsoft (MSFT) Azure, and Oracle (ORCL) Cloud. The deal, set to close in 2026, underscores Google’s strategic push to rival Microsoft’s security software dominance, with Wiz’s portfolio – spanning prevention, detection, and response – bringing proven appeal to large enterprises.
Wiz’s rapid ascent adds weight to the acquisition’s significance. Founded in 2020 under co-founder Assaf Rappaport, the startup achieved $100 million in annual recurring revenue in just 18 months, a testament to its innovative cloud security solutions. This growth trajectory had initially fueled Wiz’s ambitions of hitting $1 billion in annual recurring revenue and launching an IPO—goals Rappaport reaffirmed in a July memo to employees after rejecting a $23 billion offer from Google. That earlier walkaway, reportedly driven in part by antitrust and investor concerns, highlights the complexities of such high-stakes deals in a competitive tech landscape.
The $32 billion price tag reflects a dramatic escalation from July’s $23 billion talks, signaling Google’s determination to secure Wiz’s capabilities despite earlier hurdles. Rappaport had called rejecting the prior offer “tough,” yet the final agreement suggests a alignment of interests, positioning Google to scale Wiz’s solutions globally while maintaining compatibility with rival clouds. This move not only fortifies Google Cloud’s security edge but also repositions it in a market where AI threats are evolving fast, drawing on Wiz’s established traction and Google’s deep resources to meet enterprise demands head-on.
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