Tech giant Alphabet announced that it would pay USD 32 billion to acquire Wiz in its largest transaction, as the parent company of Google intensifies its efforts in cybersecurity to gain a competitive advantage over Amazon and Microsoft in the cloud computing market.
The asking price is significantly higher than the USD 23 billion Google offered for Wiz in 2024, before the startup was forced to back out due to antitrust concerns. This acquisition deal also marks Google’s largest all-cash acquisition to date.
“From its earliest days, Google’s strong security focus has made us a leader in keeping people safe online. Today, businesses and governments that run in the cloud are looking for even stronger security solutions and greater choice in cloud computing providers. Together, Google Cloud and Wiz will turbocharge improved cloud security and the ability to use multiple clouds,” said Google CEO Sundar Pichai while announcing the deal’s completion.
With Wiz’s AI-powered cybersecurity solutions, which businesses use to eliminate critical risks, the acquisition will strengthen Google’s cloud business and enable it to compete more effectively in a market that is seeing growth from generative AI services like ChatGPT. The collaboration also aims to boost the joint design, operation, and automation of security services by both companies while providing an end-to-end security platform for customers.
“The increased role of AI and adoption of cloud services have dramatically changed the security landscape for customers, making cybersecurity increasingly important in defending against emergent risks and protecting national security,” said Google in its media note, also announcing that Wiz’s products will continue to work and be available across all major cloud systems, including Amazon Web Services, Microsoft Azure, and Oracle Cloud, even after the acquisition is completed.
Wiz is one of the fastest-growing software startups offering cloud-based cybersecurity solutions. In May 2024, it raised USD 12 billion in a funding round. In the same year, Google offered USD 23 billion to the venture before antitrust concerns began looming over the big tech firm, delaying the deal. During that time, Wiz told its employees that it would prioritise higher recurring revenue and an IPO.
According to the latest Reuters reports, the Google-Wiz deal gained momentum following Donald Trump’s presidential inauguration in January 2025, as executives from both companies expedited negotiations in anticipation of a more favourable regulatory climate under the new administration.
The reports state that Google raised its initial USD 23 billion bid from July 2024 to USD 32 billion and significantly increased the breakup fee to over USD 3.2 billion (exceeding 10% of the deal’s total value) in case regulatory challenges obstruct the acquisition. As Donald Trump took office on January 20 and appointed key antitrust officials, this development reportedly played a crucial role in reviving the deal.
In fact, Donald Trump’s selection of Andrew Ferguson as chair of the Federal Trade Commission and Gail Slater to oversee antitrust matters at the Justice Department further bolstered confidence within both firms regarding regulatory approval. During the previous Joe Biden administration, Wiz executives were reportedly hesitant, especially after Adobe’s USD 20 billion acquisition of Figma was blocked due to antitrust concerns in late 2023.
Despite facing two ongoing Department of Justice lawsuits (one related to its dominance in online search and another concerning its advertising business), Google is in no mood to slow down its expansion strategy. The acquisition will also be a win-win for Wiz, which boasts a 70% annual revenue increase and over USD 700 million in annualised revenue.
Not only Google but many businesses found it challenging to close big deals in 2024 due to a strict regulatory environment. However, with the White House changing hands, Wall Street is hopeful that some antitrust laws will be relaxed.
Wiz’s clientele includes luxury behemoth LVMH, Morgan Stanley, BMW, and major cloud providers like Google Cloud, Amazon Web Services, Microsoft Azure, and Oracle.