In its largest deal to date, Alphabet (GOOGL.O) announced Tuesday that it would purchase Wiz for roughly $32 billion. This comes as the parent company of Google intensifies its efforts in cybersecurity to strengthen its position in the cloud computing fight against Amazon.com (AMZN.O) and Microsoft (MSFT.O).
The all-cash acquisition follows Wiz’s rejection of Alphabet’s $23 billion offer last year because of worries about antitrust approvals and its intention to concentrate on an IPO.
By acquiring Wiz, Google will strengthen its cloud business with AI-powered cybersecurity solutions that businesses employ to eliminate important risks, improving its competitiveness in a market that is seeing growth from generative AI services like ChatGPT.
Wall Street is hopeful that a change in antitrust laws under US President Donald Trump might rekindle the trend of dealmaking, even though a strict regulatory environment in 2024 has impeded such significant transactions.
In a capital round last May, Wiz, one of the fastest-growing software businesses, was valued at $12 billion. Its clients include luxury giant LVMH (LVMH.PA), BMW (BMWG.DE), Morgan Stanley (MS.N), and Google Cloud. It also collaborates with cloud providers including Amazon Web Services, Microsoft’s Azure, and Google Cloud.
Wiz will join Google Cloud after the transaction complete, which has outperformed the search sector in recent years and brought in over $40 billion in revenue in 2024.
All other major cloud services will continue to offer Wiz’s goods. In 2026, Alphabet anticipates the purchase to close, pending regulatory approval.
