Google’s Biggest Acquisition Yet: $23B Deal for Cybersecurity Wiz
Google is in advanced talks to acquire cybersecurity firm Wiz for $23 billion, according to a person familiar with the matter who said a deal is expected to close “soon.” This acquisition would be the largest in Google's history, surpassing the $12.5 billion it spent on Motorola Mobility in 2012.
Founded in 2020, Wiz has rapidly grown under CEO Assaf Rappaport. The company had been eyeing an IPO as recently as May, when it achieved a valuation of $12 billion. Wiz's cloud security offering provides executives and cybersecurity professionals insight into a company’s full cloud presence, appealing to large firms with significant computing resources. It is backed by a roster of blue-chip firms, including Israeli VC firm Cyberstarts, Index Ventures, Insight Partners, and Sequoia Capital.
Wiz also lists Amazon and Oracle among its partners, which underscores its significance in the cybersecurity space. The New York City-based startup offers “siloed security tools and scanners” for the enterprise sector, securing corporate cloud infrastructure “by creating a normalizing layer between cloud environments,” allowing businesses to “rapidly identify and remove critical risks.”
A representative for Wiz declined to comment, and Google did not return a request for comment. If completed, the acquisition would underline Google's continued bet on cybersecurity at a time when nation-state and criminal actors have managed to disrupt governments and large organizations. Google has made significant cyber acquisitions before, including the $5.4 billion purchase of Mandiant two years ago and a half-billion-dollar purchase of another cloud security startup in 2022.
Google Cloud boss Thomas Kurian has been the driving force behind the acquisition attempt, according to The New York Times. The acquisition of Wiz could help solidify Google’s reputation as a secure cloud platform, particularly in light of Microsoft's recent high-profile security breaches.
However, the company now faces unprecedented levels of antitrust scrutiny. The Justice Department has sued Google twice on antitrust grounds, and the company’s acquisition practices were highlighted in the most recent litigation, filed in 2023. The Biden administration has presided over significant antitrust actions, including the DOJ’s lawsuit over Google’s search deal with Apple and the FTC’s failed effort to block Microsoft from buying Activision.
Google’s talks with Wiz suggest that the company has developed a fresh appetite for mergers and acquisitions, competitive concerns notwithstanding. Google had been in talks to acquire sales software maker Hubspot, CNBC previously reported, but its pursuit had reportedly cooled.
The deal “looks likely,” according to The New York Times, but it could fall through and risks triggering reviews from US regulators.
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