Google is making headlines with its largest acquisition ever. The company’s parent organization, Alphabet, is set to acquire Wiz, a cloud security startup, for $32 billion in an all-cash transaction, which has now been officially confirmed. Initially, reports suggested that the deal was valued at $33 billion, which includes an additional $1 billion earmarked for retention bonuses to ensure that Wiz’s employees stay with the company after the acquisition. With a workforce of 1,700, this averages out to over $588,000 per employee, although the actual amounts will vary based on individual salaries.
Wiz will continue to function as an independent platform, offering services across all cloud providers, not just limited to Google Cloud Platform. The acquisition is expected to facilitate further hiring and potentially lead to additional acquisitions, a strategy that Wiz has been actively pursuing over the past year.
Currently, Wiz has an annual recurring revenue of $700 million. The acquisition is being compared to Microsoft’s purchase of LinkedIn, particularly in terms of the autonomy Wiz will retain within the larger organization. It’s important to note that LinkedIn has increasingly integrated Microsoft services over time, making this comparison particularly relevant. The deal is still pending regulatory and other approvals, with an expected closing date in 2026. Prior to this, Google’s largest acquisition was Motorola Mobility, which it acquired for $12.5 billion in 2011.
Negotiations for this acquisition have been ongoing for nearly a year, with discussions recently reigniting at a valuation of $30 billion. Thomas Kurian, CEO of Google Cloud, is currently in Europe, while Assaf Rappaport, CEO of Wiz, is in Israel. Reports indicate that Kurian has played a key role in leading this deal, with Wiz coming under his leadership to bolster Google Cloud’s focus on cybersecurity. In a statement, Kurian highlighted the shared vision of Google Cloud and Wiz to simplify and enhance cybersecurity for organizations of all sizes, aiming to mitigate the impact of cyber threats.
For context, last year, Google attempted to acquire Wiz for $23 billion, but negotiations fell through due to concerns over antitrust issues, Wiz’s autonomy in development under Google Cloud, and the proposed price. At that time, Wiz was valued at $12 billion following a $1 billion funding round. With a new U.S. President in office, some speculate that the regulatory landscape may now be more favorable for large tech acquisitions that previously faced hurdles.
Google’s interest in acquiring Wiz is driven by its desire to strengthen its position in two critical areas: enterprise cloud services, where it has been lagging behind AWS and Microsoft Azure, and cybersecurity, where it currently offers some products (notably Mandiant) but lacks the scale and growth potential that Wiz provides.
Wiz is particularly attractive to Google Cloud due to its substantial existing business, with projections indicating it could double last year’s annual recurring revenue to $1 billion. The acquisition also aligns with Alphabet’s broader strategic interests, potentially balancing any fluctuations in its other major investment area: artificial intelligence. Google emphasized the growing importance of cybersecurity in light of the increasing role of AI and cloud services, noting that these developments have significantly transformed the security landscape for customers.
After the initial breakdown of the deal in 2024, Wiz conducted a secondary sale at a $16 billion valuation, meaning this acquisition effectively doubles that figure, representing a significant windfall for Wiz’s investors, which include notable firms such as Sequoia, Cyberstarts, Index Ventures, Salesforce, Thrive Capital, Greenoaks, and many others.
There were rumors that Wiz, whose founders previously co-founded and sold a security startup to Microsoft, was in the process of fundraising at an even higher valuation. Last year, during a presentation at Disrupt, Rappaport did not rule out the possibility of a future acquisition but mentioned that Wiz had opted to walk away from the previous deal, describing it as “the toughest decision ever” while asserting it was ultimately “the right choice.” From a financial standpoint, it seems that Rappaport’s instincts have proven to be correct.
