Alphabet's (GOOGL, Financial) Google announced a definitive agreement to acquire New York-based cloud security startup Wiz for $32 billion in an all-cash deal. This acquisition marks Google's largest ever, aimed at enhancing its cloud security offerings in a world where artificial intelligence (AI) threats are increasingly prevalent. Wiz will be integrated into Google's cloud business.
According to Google's statement, Google Cloud, a leader in cloud infrastructure, is known for its deep AI expertise and innovative security record. Bringing these strengths to Wiz will improve and scale their solutions, benefitting customers and partners across major clouds.
The Wall Street Journal recently reported in-depth discussions between the two companies, highlighting this significant merger. Previously, CNBC noted that Wiz had turned down an earlier acquisition proposal by Google, valued at $23 billion, opting instead to pursue an initial public offering (IPO). At the time, Wiz co-founder Assaf Rappaport expressed the difficulty of rejecting Google's offer due to antitrust concerns and investor apprehensions.
Before the negotiations with Google became public, Wiz was focused on two objectives: launching an IPO and achieving $1 billion in annual recurring revenue. Under Rappaport's leadership, Wiz has rapidly grown since its inception in 2020, reaching $100 million in annual recurring revenue within just 18 months. The company's cloud security products, which include prevention, proactive detection, and response, appeal to large enterprises and position Google to better compete with Microsoft (MSFT) in the security software market.
