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In its largest-ever acquisition, Google buys cybersecurity startup Wiz for $32B

In its largest-ever acquisition, Google buys cybersecurity startup Wiz for $32B

  • 18.03.2025 20:57
  • siliconangle.com
  • Keywords: Acquisition, Cybersecurity

Google acquired cybersecurity startup Wiz for $32 billion, marking its largest-ever deal. Wiz provides cloud security tools to detect vulnerabilities and protect against cyber threats. The acquisition underscores Google's expansion in cybersecurity following its $5.4 billion purchase of Mandiant in 2022.

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Google LLC

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Analyst rating: N/A

Google is acquiring Wiz for $32B to enhance its cybersecurity offerings.

Wiz Inc.

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Analyst rating: N/A

Wiz is being acquired by Google, which will integrate its products into their security platform.

Context

Acquisition Overview

  • Google acquires cybersecurity startup Wiz in its largest-ever deal for $32 billion.
  • The acquisition values Wiz at a $20 billion premium over its recent valuation.
  • This is significantly higher than Google's previous offer of $23 billion, which Wiz rejected to pursue going public.

Wiz's Growth and Market Presence

  • Wiz was founded in 2020 and achieved annualized recurring revenue (ARR) of $100 million by 2022.
  • The company reportedly reached $700 million in ARR recently.
  • Over 50% of the Fortune 100 companies use Wiz's cybersecurity platform.

Wiz Product Portfolio

  • Wiz Cloud: Identifies vulnerabilities in cloud environments, including misconfigurations and access control issues. Agentless deployment accelerates setup.
  • Wiz Defend: Uses eBPF runtime sensors embedded in the Linux kernel to detect and block cyberattacks. Collects detailed data on security events and simulates potential breach impacts using a graph database.
  • Wiz Code: Highlights vulnerabilities directly in developers' code editors, offering fixes and identifying pipeline configuration flaws.

Google's Strategy

  • Plans to integrate Wiz’s technology with its existing Google Security Operations product to create a unified security platform.
  • Google Cloud will continue supporting multiple cloud environments, including competitors', and maintain third-party tools on the Google Cloud Marketplace.
  • This acquisition complements Google’s prior $5.4 billion purchase of Mandiant in 2022.

Market Implications

  • The deal underscores the growing importance of cloud security and zero trust frameworks in enterprise cybersecurity.
  • Wiz's rapid growth and adoption by Fortune 100 companies highlight its competitive position in the cybersecurity market.
  • Google’s move may intensify competition with other cloud providers like AWS and Azure, which also offer cybersecurity tools.

Competitive Landscape

  • The acquisition positions Google to compete more effectively with players like CrowdStrike, Palo Alto Networks, and FireEye.
  • Wiz's innovative technologies, particularly its eBPF-based approach, give it a potential edge in detecting advanced threats.

Long-term Effects

  • The integration of Wiz’s products into Google’s ecosystem could enhance the appeal of Google Cloud for enterprises prioritizing security.
  • The deal may also accelerate innovation in cloud-native security tools and incident response capabilities.

Regulatory Considerations

  • Regulatory approvals are required, with closing expected by 2026.
  • Antitrust concerns loom large, as Wiz’s termination fee ($3.2 billion) suggests potential hurdles.
  • Wiz’s independence is preserved in case of protracted antitrust litigation.

This acquisition represents a significant strategic move for Google to strengthen its cybersecurity offerings and compete more effectively in the rapidly evolving cloud security market.