On March 18, Google reached an agreement to acquire security startup Wiz for $32 billion in cash, bringing Wiz into its Google Cloud division. This is Google's second bid to buy Wiz after last year's failed attempt. The company expects to complete the deal by 2026.

wiz bloomberg
Acquiring Wiz will help Google provide new security products to customers. Photo: Bloomberg

Wiz is a startup that provides cloud-based cybersecurity solutions, working closely with Microsoft and Amazon. In May 2024, the company was valued at $12 billion.

If the deal is approved by regulators, it would be the largest in Google's history, surpassing its $12.5 billion acquisition of Motorola Mobility in 2012.

Joining Google Cloud will help Wiz accelerate its pace of innovation, according to co-founder and CEO Assaf Rappaport. Founded in 2020 by a group of Israeli entrepreneurs, Wiz has grown rapidly, reaching $100 million in annual revenue in just 18 months. The company's solutions focus on preventing, detecting, and responding to cybersecurity threats.

Cybersecurity is receiving greater attention following last year's CrowdStrike incident, when a range of industries were severely affected, forcing businesses to increase investments to protect their systems.

The 2024 deal fell through due to antitrust concerns from Wiz executives and investors, according to the Financial Times.

However, Alphabet and Wiz hope that this year, the US government and Federal Trade Commission Chairman Andrew Ferguson will take a softer stance.

Google confirmed that Wiz products will still be available on rival cloud platforms such as Amazon Web Services, Microsoft Azure, and Oracle Cloud.

CEO Rappaport also pledged that Wiz will continue to maintain its independence as a multi-cloud platform. In addition to Wiz, Google Cloud Marketplace still offers many other security services.

Google is currently facing two antitrust lawsuits from the US Department of Justice related to its search engine and digital advertising. The company lost the first case and is appealing, while the second case is still awaiting a decision.

Google has made several acquisitions in recent years to bolster security for its cloud customers. In 2022, it acquired Siemplify and Mandiant for $500 million and $5.4 billion, respectively.

Owning Wiz would help Google strengthen its position in the cybersecurity market.

(According to Bloomberg, The Verge, CNBC)