Google to Acquire Wiz Inc. for $32B in Largest All-Cash Deal

On Tuesday, March 18, Google LLC announced that it had reached a definitive agreement to acquire Wiz Inc., a New York-based cybersecurity company, for $32 billion.

According to the official statement, this deal represents Google’s largest all-cash acquisition to date and marks a strategic effort to strengthen its Google Cloud business.

“This acquisition represents an investment by Google Cloud to accelerate two large and growing trends in the AI era: improved cloud security and the ability to use multiple clouds (multicloud),” Google stated.

Following the announcement, Alphabet Inc.’s stock, Google’s parent company, showed a modest increase of 0.07%, trading at $164.34 in the pre-market session on the Nasdaq Composite Index at 9:12 a.m. (EDT), compared to $164.29 at the previous market close.

Focus on Strengthening Cloud Security

Google’s CEO, Sundar Pichai, highlighted the importance of enhancing cloud security and increasing flexibility in cloud computing services.

“From its earliest days, Google’s strong security focus has made us a leader in keeping people safe online. Today, businesses and governments that run in the cloud are looking for even stronger security solutions, and greater choice in cloud computing providers. Together, Google Cloud and Wiz will turbocharge improved cloud security and the ability to use multiple clouds,” said Pichai.

Google plans to integrate Wiz’s services into its cloud infrastructure to protect against foreign threats and accelerate growth using Wiz’s resources and technology.

The deal is expected to enhance the design, operation, and automation of security services while providing a comprehensive security platform for customers.

Google noted that AI and increased cloud adoption have reshaped the security landscape, making cybersecurity a crucial factor in protecting businesses and national security from emerging threats.

Wiz’s Products to Remain Compatible Across Major Cloud Platforms

According to the announcement, Wiz’s products will continue to be available on Amazon Web Services (AWS), Microsoft Azure, and Oracle Cloud after the acquisition is finalized.

This ensures that existing customers can continue using Wiz’s services, regardless of their cloud platform.

A report from Reuters revealed that Google initially offered $23 billion for Wiz in 2024, but the deal faced delays due to antitrust concerns surrounding big tech firms.

Background of the Deal

This deal reflects Google’s commitment to improving security technology amid the rise of AI-driven cyber threats.

“Google Cloud is a leader in cloud infrastructure, with deep AI expertise and a track record of industry-leading security innovation,” Google said in a release.

“Bringing all this to Wiz will help make their solutions even better and more scalable, benefiting customers and partners across all major clouds.”

Last year, Wiz turned down a $23 billion acquisition offer from Google. At the time, Wiz’s leadership expressed interest in pursuing an initial public offering (IPO) instead. However, the IPO market remained sluggish after deals slowed down starting in 2022.

A source familiar with the matter told CNBC that Wiz walked away from the deal in July 2024 due to antitrust and investor concerns.

“Saying no to such humbling offers is tough,” Wiz co-founder Assaf Rappaport wrote in a memo to employees obtained by CNBC.

Regulatory and Market Pressures

Shortly after Wiz declined the offer, a federal judge ruled that Google holds a monopoly in the search market.

The ruling followed a four-year legal battle in which the government accused Google of creating barriers to competition and maintaining dominance through unfair practices.

Alphabet CEO Sundar Pichai was one of several high-profile tech executives who attended President Donald Trump’s inauguration in January 2025. Alphabet also contributed $1 million to the inauguration fund.

Before resuming acquisition talks with Google, Wiz had targeted an IPO and aimed to achieve $1 billion in annual recurring revenue.

In the July memo, Rappaport noted that the company would pursue those goals independently.

Wiz, founded in 2020, experienced rapid growth under Rappaport’s leadership. The company reached $100 million in annual recurring revenue within just 18 months.

Wiz’s security products, which include threat prevention, active detection, and response capabilities, have been highly appealing to large enterprises.

“Becoming part of Google Cloud is effectively strapping a rocket to our backs: it will accelerate our rate of innovation faster than what we could achieve as a standalone company,” Rappaport said in a blog post.

Google’s Strategy and Acquisition History

While Google has a history of acquisitions, it has typically avoided large-scale deals.

Before Wiz, Google’s largest acquisition was the $12.5 billion purchase of Motorola in 2012. Two years later, Google sold part of the Motorola business to Lenovo for $2.9 billion.

Google has also made other cybersecurity-focused acquisitions, including the $5.4 billion purchase of Mandiant in 2022.

Alphabet ended the previous fiscal year with $96 billion in cash and marketable securities, which provides the financial flexibility needed for this large-scale deal.

Anticipated Market Impact

The deal is expected to close by 2026, pending regulatory approval and customary closing conditions. Wiz’s products will remain compatible with competitors’ cloud platforms, ensuring that existing customers face minimal disruption.

Reports of the acquisition were first revealed by The Wall Street Journal on Monday. Following the announcement, Alphabet shares fell by approximately 2% and are now down 15% for the year.

Strategic Importance for Google

Google’s decision to acquire Wiz reflects the growing importance of cybersecurity in an AI-driven world.

Strengthening its security infrastructure positions Google to better compete with rivals like Microsoft and Amazon in the cloud market.

By integrating Wiz’s capabilities, Google aims to offer a more secure and versatile cloud platform, helping businesses and governments defend against emerging cyber threats.