Alphabet Acquires Wiz in Landmark $32bn Deal
Deal News | Mar 18, 2025 | EIN
Alphabet, Google's parent company, has agreed to acquire cybersecurity startup Wiz for $32 billion, marking the company's largest acquisition to date and a significant move into the cloud computing and cybersecurity sectors. The deal positions Wiz to become part of Google Cloud, highlighting Alphabet's strategic initiative to enhance its cloud offerings against competitors like Amazon Web Services and Microsoft's Azure. Founded by Israeli cyber intelligence alumni, Wiz has rapidly grown to achieve $500 million in annualized recurring revenue, aiming to double by 2025. The acquisition underscores the increasing importance of cybersecurity in the digital age, with Alphabet leveraging Wiz's innovative cloud security solutions. The transaction is subject to regulatory scrutiny given its size, with potential antitrust concerns anticipated. This acquisition eclipses Alphabet's previous major purchases, including Motorola Mobility and Mandiant, and aligns with its goal to diversify its revenue streams.
Sectors
- Cybersecurity
- Cloud Computing
- Mergers and Acquisitions
Geography
- United States – Wiz is headquartered in New York, and Google's parent company, Alphabet, is based in the United States.
- Israel – Wiz was founded by alumni of Israel's elite cyber intelligence unit and is noted as the largest-ever acquisition of an Israeli-founded tech company.
Industry
- Cybersecurity – The article highlights Wiz's role as a leading cybersecurity firm, focusing on preventing cybersecurity incidents and protecting cloud services.
- Cloud Computing – Google Cloud is aiming to strengthen its market position through Wiz's cloud security services, highlighting the growing demand for robust cloud solutions.
- Mergers and Acquisitions – Alphabet's acquisition of Wiz is a significant M&A event in the technology sector, emphasizing Alphabet's strategic push for growth and diversification.
Financials
- $32 billion – The acquisition cost Alphabet will pay to acquire Wiz in an all-cash transaction.
- $500 million – Wiz's reported annualized recurring revenue for the previous year.
- $1 billion – Retention bonus for Wiz employees as part of the acquisition deal.
- $12 billion – The valuation of Wiz during a $1 billion funding round in 2022.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Alphabet Inc. | Acquirer | Company | The parent company of Google, acquiring Wiz to expand its cloud and cybersecurity capabilities. |
| Wiz Inc. | Target Company | Company | A leading cloud security platform focused on preventing cybersecurity incidents in cloud environments. |
| Federal Trade Commission (FTC) | Regulator | Government | The agency expected to review the acquisition for antitrust concerns. |
| Financial Times | Source | Company | Provided detailed reporting on the acquisition and its strategic implications. |
| Roy Reznik | Co-founder | People | A key figure at Wiz who discussed the company's revenue goals and strategic direction with Financial Times. |