Google Acquires Cybersecurity Firm Wiz for $32 Billion
In a groundbreaking move, Google has announced its acquisition of the rapidly growing cybersecurity firm Wiz for a whopping $32 billion. This deal marks the tech giant’s largest acquisition to date.
The all-cash transaction for the privately held Wiz signifies Google’s significant investment in cloud security and cybersecurity during a period of exponential growth in artificial intelligence.
Surpassing Google’s previous largest acquisition of Motorola Mobility for $12.5 billion in 2012, the Wiz deal is subject to regulatory approval. Google’s past acquisition of Motorola resulted in significant losses for the company.
Last summer, Wiz was in discussions with Google for a potential acquisition worth around $23 billion, as reported by sources. However, a deal was not reached, leading Wiz to consider focusing on an initial public offering instead.
Founded just five years ago in New York, Wiz has experienced remarkable growth under the leadership of Assaf Rappaport, Ami Luttwak, Yinon Costica, and Roy Reznik. The founders, who previously served in the Israel Defense Forces’ cyber intelligence division, have propelled Wiz to success in the cybersecurity software market for cloud computing.
“Wiz has achieved so much in a relatively short period, but cybersecurity moves at warp speed and so must we. The time is now,” Rappaport stated in a recent blog post.
With a price tag of $32 billion, the acquisition of Wiz ranks as the seventh-largest takeover of a private US firm on record, according to Dealogic.
Market analysts are hopeful that the Google-Wiz deal will mark the beginning of a resurgence in dealmaking, which has slowed down in recent months due to market volatility and declining CEO confidence.
The agreement between Google and Wiz comes following the departure of stringent Biden antitrust regulators who had been blocking numerous mergers on antitrust grounds. The change in regulatory environment has reignited M&A activity in the Big Tech sector.
“With Lina Khan gone at the FTC, the M&A engines are back underway in Big Tech,” noted Dan Ives, global head of technology research at Wedbush Securities, in a statement to clients.
While some Republicans supported Khan’s antitrust efforts, including Vice President JD Vance, others view the shift in regulatory approach as a positive step towards promoting innovation and growth in the tech industry.
Last year, Vance commended Khan as “one of the few people in the Biden administration that I think is doing a pretty good job.” — CNN
