Alphabet Inc., Google’s parent company, has agreed to acquire cybersecurity firm Wiz Inc. for $32 billion in cash. The deal comes less than a year after previous negotiations fell through, as the cloud security startup opted to remain independent.
Once finalized, Wiz will become part of Google Cloud, the companies announced on Tuesday. However, the acquisition is subject to regulatory approvals and is expected to close next year. This would mark Alphabet’s largest acquisition to date.
Last year, Wiz declined a $23 billion offer from Google after months of discussions, believing it could achieve a higher valuation through an initial public offering. Concerns over regulatory hurdles also played a role in the decision.
By acquiring Wiz, Google aims to enhance its cloud security offerings as it seeks to compete with Microsoft and Amazon in the fast-growing cloud computing market. Wiz provides cybersecurity solutions that operate across multiple cloud platforms, helping organizations identify and mitigate threats in complex cloud environments. The company’s tools will continue to function on competing platforms such as Amazon Web Services, Microsoft Azure, and Oracle Cloud.
Alphabet’s stock showed little movement in premarket trading on Tuesday, following a 0.7% decline on Monday, closing at $164.29. So far, the stock has dropped 13% this year.
Founded in 2020, Wiz has rapidly expanded with backing from investors such as Greenoaks, Sequoia Capital, Index Ventures, Insight Partners, and Cyberstarts. In May 2024, it secured a valuation of $12 billion in a funding round.
Wiz CEO Assaf Rappaport had previously called Google’s initial bid “humbling” but expressed a preference for building the company independently, aiming to compete with cybersecurity giants like CrowdStrike and Palo Alto Networks. Last year, Wiz and its investors were hesitant to accept Google’s offer due to concerns over regulatory scrutiny in the US and Europe.
Although the current political landscape under the Trump administration may be more favorable for large mergers, Alphabet’s acquisition of Wiz could still face antitrust scrutiny. Google is already dealing with legal challenges, including a Department of Justice case accusing it of monopolistic practices in online search. A federal judge previously ruled that Google held an illegal monopoly in search, and the company is also battling another antitrust case related to its digital advertising business.
