Google Acquires Wiz for $32 Billion to Strengthen Cloud Security

March 18, 2025 – Google’s parent company, Alphabet, is set to acquire cloud security startup Wiz for $32 billion, making it the largest acquisition in the company’s history. The deal, still subject to regulatory approval, marks a major move by Google to expand its cloud security capabilities and better compete with industry leaders like Amazon Web Services (AWS) and Microsoft Azure.

Largest Deal in Google’s History

The acquisition surpasses Google’s previous record-breaking purchase of Motorola Mobility for $12.5 billion in 2011. Talks between Google and Wiz have been ongoing for nearly a year, with a previous offer of $23 billion falling through due to concerns over regulatory scrutiny, Wiz’s autonomy under Google Cloud, and valuation disagreements.

Despite the earlier breakdown in negotiations, Wiz continued to grow, increasing its valuation from $12 billion to $16 billion last year. The company also crossed $500 million in annual recurring revenue (ARR) and is on track to reach $1 billion this year, making it a prime target for acquisition.

Google’s Push into Cloud Security

Google has long been working to strengthen its position in cloud computing but remains behind AWS and Microsoft Azure. The acquisition of Wiz is expected to help Google close this gap by integrating the startup’s advanced security solutions into Google Cloud.

Wiz has built a strong reputation for offering real-time risk assessment and security visibility, making it one of the fastest-growing cybersecurity firms. By adding Wiz to its portfolio, Google aims to enhance its enterprise cloud offerings and improve its security infrastructure.

Regulatory Hurdles and Market Impact

The deal will need approval from regulatory authorities before it is finalized. With a new presidential administration in place, some industry experts believe there may be a more favorable environment for large tech acquisitions.

If approved, the acquisition could significantly reshape the cloud security market. Wiz’s cutting-edge technology, combined with Google’s vast resources, could create a more competitive landscape in enterprise security solutions.

Future of Wiz Under Google

Wiz CEO Assaf Rappaport previously stated that the company had turned down Google’s earlier offer, calling it "the toughest decision ever" but ultimately "the right choice." With this new deal, Wiz’s leadership will now work under Google Cloud, though details about its operational independence remain unclear.

Google and Wiz have yet to officially confirm the acquisition, but multiple reports indicate that the agreement is in place. More details are expected as the approval process moves forward.



News Source: TechCrunch