Alphabet, the parent company of Google, is set to acquire cybersecurity firm Wiz for $32 billion — a transaction aimed at bolstering the tech giant’s internal cloud computing capabilities amidst the rapid growth of artificial intelligence.
If finalized, this cash deal, announced on Tuesday, will mark Google’s priciest acquisition in its 25-year tenure. Last July, Wiz turned down a proposed buyout from Alphabet valued at $23 billion.
This acquisition provides Google with significant traction in the cloud-computing sector by enhancing the security of its offerings.
“Wiz and Google Cloud share the vision that cloud security must be simplified, more attainable, and smarter, enabling a broader range of organizations to utilize cloud and AI securely,” stated Wiz CEO Assaf Rappaport in a blog post.
Wiz is set to become part of Google Cloud, with this acquisition reflecting the company’s investment in “accelerating two significant and evolving trends in the AI landscape: enhanced cloud security and increased capability for multi-cloud usage.”
According to Google CEO Sundar Pichai, the collaboration between Google Cloud and Wiz “will supercharge enhancements in cloud security and facilitate the usage of multiple clouds.”
Co-Founder & CEO Assaf Rappaport emphasized that the partnership will “strengthen our commitment to enhancing security and preventing breaches by providing additional resources and significant AI expertise.”
Founded in 2020 and based in New York, Wiz specializes in security tools aimed at protecting sensitive information stored in remote data centers from unauthorized access.
This anticipated acquisition will be scrutinized by antitrust regulators. While many expect the Trump administration to be more business-friendly, there has also been skepticism towards big tech mergers.
Additionally, new Federal Trade Commission Chair Andrew Ferguson has pledged to uphold a stringent review process for mergers and acquisitions.
