Alphabet to Buy Cybersecurity Firm Wiz for $32 Billion
Alphabet, the parent company of Google, announced on Tuesday that it will buy cybersecurity company Wiz for about $32 billion. This is Alphabet’s biggest deal ever and aims to strengthen its cloud business by adding advanced AI-powered security tools.
According to Reuters, the all-cash deal comes after Wiz turned down a $23 billion offer from Alphabet last year. At the time, Wiz was focused on going public but has now agreed to join Alphabet to help boost Google Cloud’s security capabilities.
Wiz is one of the fastest-growing software startups, valued at $12 billion last year. It works with major cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud. Its clients include big names like Morgan Stanley, BMW, and luxury giant LVMH.
The deal will help Google Cloud compete better with rivals like Amazon and Microsoft, especially as demand for cloud services grows with the rise of AI tools like ChatGPT. Wiz’s CEO, Assaf Rappaport, said the partnership will help businesses tackle critical cybersecurity risks.
While regulatory challenges have made big deals harder in 2024, Wall Street is hopeful that changes in U.S. antitrust policies could make it easier for such deals to go through. Alphabet expects the deal to close by 2026, pending regulatory approval.
This isn’t Alphabet’s first big move in cybersecurity. In 2022, it bought Mandiant for $5.4 billion, outbidding Microsoft.
The Wiz deal shows Alphabet’s commitment to staying competitive in the cloud and cybersecurity markets.
Credit to Reuters for providing detailed reporting on this story. The deal highlights the growing importance of cybersecurity as businesses increasingly rely on cloud services and AI technologies.