Alphabet (BDR:), Google controller, agreed to purchase the Wiz cybersecurity company for $ 32 billion in cash, consolidating a deal less than a year after initial negotiations failed because the cloud computing startup preferred to maintain its independence.
Once the business is completed, Wiz will be integrated into the Google Cloud, companies said in a statement on Tuesday.
The acquisition, which will be the largest ever made by Alphabet, happens after Wiz declined a $ 23 billion offer from the Internet giant last year after months of negotiations. At the time, the startup chose to continue alone, believing that it could achieve an even greater assessment through an initial public offering (IPO). Concerns about regulatory challenges also weighed on the decision.
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With the purchase of Wiz, Google reinforces the safety of its cloud computing platform in an attempt to reduce the distance to Microsoft Corp. and Amazon.com Inc., its largest competitors in a highly competitive and rapidly growing market. Wiz offers specific cloud safety tools that can operate on various platforms and identify threats efficiently in complex environments.
“Wiz products will continue to be available to all major clouds, including Amazon Web Services, Microsoft Azure and Oracle Cloud, and will be offered to customers through a variety of security partners solutions,” the companies said in the statement.
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Founded in 2020, Wiz grew rapidly, with investors such as Greenoaks, Sequoia Capital, Index Ventures, Insight Partners and Cyberstarts. The company was valued at $ 12 billion in a financing round held in May 2024.
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Wiz CEO Assaf Rapport described Alphabet’s initial proposal as “flattering,” but at the time said he would rather turn Wiz into a cybersecurity giant, competing with companies such as Crowstike Holdings Inc. and Palo Alto Networks.
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Startup and its investors also rejected Google’s offer last year due to concerns about a long regulatory approval process, as authorities in the US and Europe have increased scrutiny over the economic and market power of technology giants. Although President Donald Trump’s government should offer a more favorable environment for mergers and acquisitions, Alphabet’s proposal can still attract attention from antitrust regulators.
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Google already faces challenges in this area, including a US Justice Department process, which accuses the company of abusing its dominant position in the online search market. Last year, a federal judge determined that the technology giant maintained an illegal monopoly in this segment. The company also responds to another process related to its digital advertising tools.
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