Alphabet, the Google parent is in close negotiations to finalize a deal to acquire cybersecurity startup Wiz for $30B. The cybersecurity company Wiz’s deal of more than $30B would make it Alphabet’s largest potential acquisition to date. Neither company has publicly acknowledged a deal.
This Google and Wiz cybersecurity buyout comes after a $23B deal fell through last summer. Alphabet’s latest offer is higher by roughly a third of the $23B, which Wiz called off in July 2024, as there were concerns that it would not clear antitrust hurdles. Wiz had said in an internal memo at the time that it would focus on an initial public offering.
Alphabet deal with Wiz
As per report, both the companies, Wiz and Alphabet are in advanced talks and could close a deal anytime, if everything works out as planned.
The cybersecurity firm acquisition would boost Alphabet’s efforts in cloud computing, as it could additionally offer enhanced security features provided by Wiz. Currently Alphabet’s cloud infrastructure business generates more than $43B in revenue last year.
Google’s biggest buyout
If the reported deal with Wiz, the cybersecurity firm finalizes then this would be Google’s biggest acquisition ever. This deal with Wiz would top Alphabet’s $12.5B purchase of Motorola Mobility that closed in 2012, as per report.
The deal hasn’t been signed and could still change, the person familiar with the development said.
Wiz’s cybersecurity business
Wiz is known for providing cloud-based cybersecurity solutions powered by artificial intelligence (AI), helping companies identify and remove critical risks on cloud platforms.
Wiz’s clients include Microsoft and Amazon, Morgan Stanley, DocuSign. The cybersecurity firm has around 900 employees across the US, Europe, Asia and Israel.
Growing interest in cybersecurity industry
Interest in the cybersecurity industry has surged since the global CrowdStrike outage last year, making enterprises more concerned about protecting their digital infrastructures.
Wiz was valued at $12B in a private funding round last May after raising $1 billion. The company said at the time that it planned to use the new financing to fuel acquisitions and product and talent development.
As per Dean Scontras, area vice president, public sector at the cybersecurity firm, “Wiz stands at the brink of all three: cloud, AI and cyber.” He also added, “Wiz provides a single platform to view and contextualize risk across all clouds as well as AI security posture management.”
