The acquisition marks Google’s largest-ever purchase, boosting its cloud security capabilities and challenging rivals like Amazon and Microsoft.
Alphabet, the parent company of Google, has reached an agreement to acquire Israeli cloud security startup Wiz in a massive $32 billion cash deal, making it the largest acquisition in the tech giant’s history. The deal is expected to be officially announced next Tuesday.
Strengthening Google Cloud’s Security Offerings
The acquisition is part of Google’s ongoing efforts to expand its cloud services and reduce its dependency on advertising revenue. By integrating Wiz’s cutting-edge cybersecurity platform into Google Cloud, Alphabet aims to improve its competitive edge against cloud market leaders Amazon AWS and Microsoft Azure.
Currently, Google Cloud holds about 12% of the global cloud market, compared to Azure’s 21% and AWS’s 33%.
Wiz: A Cybersecurity Powerhouse
Founded in 2020 by veterans of Israel’s elite cyber intelligence unit, Wiz has quickly become one of the fastest-growing companies in the cybersecurity sector. The company specializes in cloud security solutions for large enterprises and boasts an impressive client list, serving nearly half of the Fortune 100.
Wiz reached $500 million in annual recurring revenue in 2024, and is projected to double that in 2025 — making it a particularly attractive acquisition target.
From Failed Negotiations to a Landmark Deal
Alphabet had previously attempted to acquire Wiz for $23 billion, but the talks fell through due to regulatory concerns raised by Wiz’s investors and board. The renewed deal includes full payment in cash, along with retention bonuses for employees that could add up to another $1 billion.
Regulatory Scrutiny Expected
Despite the agreement, the acquisition will likely face close review by the U.S. Federal Trade Commission (FTC). Under the current administration, there is growing scrutiny of large tech mergers. FTC Chairman Andrew Ferguson has signaled a more aggressive stance on antitrust enforcement, and Vice President J.D. Vance has previously criticized consolidation in the tech industry.
A New Milestone for Alphabet
The Wiz acquisition surpasses Alphabet’s previous record set in 2011 with the $12.5 billion purchase of Motorola Mobility. It also dwarfs its 2022 acquisition of cybersecurity firm Mandiant for $5.4 billion.
With this deal, Google not only secures advanced cloud protection technology but also signals its commitment to becoming a leading player in enterprise cybersecurity.
