Wiz's $32 Billion Acquisition by Google Highlights Cloud Security
Deal News | May 23, 2025 | EIN
Google's acquisition of the Israeli-American cybersecurity startup Wiz for $32 billion marks a significant milestone for cloud security. This transaction emphasizes Google's strategy to enhance its cloud security capabilities amidst rapidly evolving AI advancements. The deal represents a substantial success story for Wiz, a company founded in 2020, as it achieved over $500 million in annual recurring revenue in just five years. The merger is expected to close in 2026, integrating Wiz into Google Cloud, pending regulatory approvals. Founders Assaf Rappaport and his team, who initially formed their bond during military service, co-founded Wiz just before the pandemic, capitalizing on the global shift to remote work. This acquisition anticipates a trio of tech giants - Alphabet, Amazon, and Microsoft - vying for dominance in the cloud security arena. Prominent venture capital firms like Sequoia Capital and Index Ventures anticipate substantial returns from this transaction. The $32 billion price is a marked increase from Google's initial $23 billion offer in 2024, reflecting Wiz's growing potential. This acquisition showcases Alphabet's strategic pivot amidst anticipated regulatory scrutiny under the new U.S. administration.
Sectors
- Technology
- Cybersecurity
- Private Equity and Venture Capital
Geography
- United States – Google is a U.S.-based company with plans to integrate Wiz into its U.S. operations, and regulatory approvals are primarily within the US jurisdiction.
- Israel – Wiz was co-founded by individuals linked to the Israeli military, emphasizing Israel's connection to the cybersecurity industry.
Industry
- Technology – The acquisition of a cybersecurity startup by a major tech company highlights the significance of technological advancements and innovations, particularly in cloud security.
- Cybersecurity – Wiz represents a key player in the cybersecurity sector, offering solutions for cloud applications and infrastructure security.
- Private Equity and Venture Capital – Venture capital firms like Sequoia Capital and Index Ventures invested early in Wiz, now reaping substantial returns upon its acquisition.
Financials
- $32 billion – The all-cash acquisition price for Wiz by Google.
- $500 million – The annual recurring revenue of Wiz.
- $245 million – The total investment made by Index Ventures in Wiz.
- $3.5 billion – The expected return for Index Ventures from the acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Bidding Company | Company | The acquirer of Wiz in a $32 billion transaction, part of Alphabet Inc. | |
| Wiz | Target Company | Company | A cybersecurity startup focused on cloud security, founded in 2020. |
| Alphabet Inc. | Parent Company | Company | The parent company of Google, involved in this acquisition. |
| Assaf Rappaport | CEO and Co-Founder | Person | CEO of Wiz, instrumental in its rapid growth and strategic direction. |
| Sequoia Capital | Investor | Company | A venture capital firm and early investor in Wiz. |
| Index Ventures | Investor | Company | A prominent venture capital firm that invested in Wiz, standing to gain heavily from the acquisition. |
| Greenoaks | Investor | Company | A venture capital firm that invested in Wiz. |
| Andreesen Horowitz | Investor | Company | A venture capital firm that invested in Wiz. |