In a landmark deal announced Tuesday, Google has agreed to acquire cloud security company Wiz for $32 billion in an all-cash transaction. The acquisition represents Google's largest purchase to date, more than doubling its previous record of $12.5 billion for Motorola in 2012.
Under the agreement, New York-based Wiz will join Google Cloud, strengthening the tech giant's security capabilities amid growing artificial intelligence adoption and evolving cybersecurity challenges. The deal is expected to close in 2026, pending regulatory approvals.
Founded in 2020, Wiz has experienced rapid growth, reaching $100 million in annual recurring revenue within just 18 months of launch. The company currently serves nearly half of Fortune 100 companies, including Google's cloud competitors Amazon Web Services and Microsoft Azure.
"Becoming part of Google Cloud is effectively strapping a rocket to our backs," said Wiz CEO Assaf Rappaport in a blog post. "It will accelerate our rate of innovation faster than what we could achieve as a standalone company."
The acquisition comes after previous negotiations between the two companies fell through in July 2023, when Wiz declined a $23 billion offer from Google. At that time, the company planned to pursue an IPO instead. However, recent market conditions and the promise of accelerated growth under Google appear to have changed the trajectory.
Google's cloud division has seen substantial growth, with revenue increasing 64% to $43.2 billion in 2023. The addition of Wiz is expected to enhance Google's competitive position against Microsoft and Amazon in the cloud security market.
The deal faces potential scrutiny from antitrust regulators, particularly given Google's ongoing legal challenges regarding its search and advertising businesses. Both companies have expressed confidence in obtaining regulatory approval under the current administration.
Wiz's security products will continue to operate across multiple cloud platforms, including AWS, Microsoft Azure, and Oracle Cloud, according to the companies' joint announcement.
Alphabet shares responded to the news with a 2% decline, reflecting investor caution about the substantial purchase price and regulatory hurdles ahead.