Google makes the biggest acquisition in its history. The alphabet of the company’s parent company acquires Wiz, the launch of the Security Cloud, for $ 32 billion in an All-Cash transaction. The agreement has been confirmed now.
The Wiz will remain an independent platform that will work for all cloud providers, not just the Google Cloud platform. There will be more recruitment to expand the business and possibly more acquisitions, which is something that works for the last year.
Our sources tell us that Wiz is $ 700 million in annual repetitive revenue right now. Our agreement is described as similar to that between LinkedIn and Microsoft, in terms of autonomy within the larger organism. (It should be noted that LinkedIn do Use many Microsoft services and has increased over time, so perhaps this is a more important ratio than it was intended.)
The deal will still need regulators and other approvals before it is closed. Previously, Google’s largest acquisition was buying Motorola Mobility for $ 12.5 billion in 2011.
This acquisition was again away for almost a year. Talks seemed to rejuvenate again this week at a price of $ 30 billion.
Thomas Kurian-Google Cloud CEO-is currently in Europe and Assaf Rappaport, the CEO of New York Wiz, is in Israel today. From what we understand, Kurian was leading to this deal and Wiz would stay under his wing, promoting a great boost to cloud security for the company.
“Google Cloud and Wiz are sharing a common vision to make cyberspace more accessible and simpler to use for organizations of any size and industry,” he said in a statement today. “The opportunity for more companies to prevent cyber attacks, including very complex business software environments, will help organizations minimize the costs, disorder and suffering caused by cyberspace incidents.”
Some history. Last year, Google offered to buy Wiz for $ 23 billion, but the talks have fallen, sources report about antitrust concerns, Wiz’s autonomy for development in Google Cloud and possibly even price. At the time of the deal talks, Wiz was valued at $ 12 billion based on a $ 1 billion funding round earlier.
In the meantime there is now a new US president and Some believe The new regime will promote a more favorable climate for large technology acquisitions that could have been preceded by.
For its part, Google was interested in winning Wiz to Turbo in two areas: Enterprise Cloud, a business where it continues to lag behind AWS and Microsoft Azure. And security, an area where it offers some products, but nothing about the size, scale or wiz growth trajectory.
It also works to supplement, or even offset, whatever it grows and falls, can come to the other large area where the alphabet places bets: AI.
“The increased role of AI and the adoption of cloud services have dramatically changed the security landscape for customers, making cyberspace safety increasingly important in defending emerging risks and protecting national security,” Google said today in its announcement today.
Shortly after the agreement was made in 2024, Wiz ran a secondary selling of $ 16 billion, which means that this acquisition doubles this valuation. This is a huge unexpected for Wiz investors, who include Sequoia, CyberStarts, Index Ventures, SalesForce, Thrive Capital, Greenoaks and about two dozen.
The rumors were that the Wiz-of which the founders previously founded and sold a security start to Microsoft, which became the Ankara of the company’s cloud security business-was in the process of raising capital at an even higher valuation.
And businesses are growing, with the company crossing $ 500 million in ARR last year and on the right track to double this year to $ 1 billion.
Last year on stage during the disorder, Rappaport did not rule out the possibility of redemption in the future, but also confirmed that it was the Wiz who left the deal, describing it as “the toughest decision” and its preservation was “the right choice”.
In a purely economical result, it seems that his instinct is true.
We will hear the call of the investor later today and we will inform this story in more detail as it emerges.
