Google Acquires Wiz for $32B: Major Move to Strengthen Cloud Security
In a landmark move, Google is set to make its largest acquisition ever by purchasing the cloud security startup Wiz for an estimated $32 billion to $33 billion. This significant deal, confirmed by reliable sources, underscores Google’s commitment to enhancing its position in the cloud security sector.
Wiz: A New Era in Cloud Security
According to insiders, Wiz will maintain its independence and continue to operate across various cloud platforms, not just within the Google Cloud ecosystem. This strategic acquisition aims to further strengthen Wiz’s market presence, with plans for increased hiring and potential future acquisitions.
Wiz’s Current Financial Status
- Annual Recurring Revenue: Wiz is currently generating approximately $700 million in annual recurring revenue.
- Comparison with LinkedIn’s Acquisition: The acquisition is reminiscent of Microsoft’s purchase of LinkedIn, particularly regarding Wiz’s autonomy within Google.
Although the deal has been reported extensively, it still requires regulatory approval before finalization. Both Google and Wiz have yet to issue an official announcement, but the acquisition’s completion seems imminent, as corroborated by multiple media outlets.
The Evolution of Google’s Acquisitions
Previously, Google’s largest acquisition was the purchase of Motorola Mobility for $12.5 billion in 2011. This acquisition has been in the works for nearly a year, with negotiations reviving recently at a price of around $30 billion.
Leadership and Strategic Direction
Thomas Kurian, the CEO of Google Cloud, has been spearheading this deal while currently in Europe, while Wiz’s CEO, Assaf Rappaport, is in Israel. Under Kurian’s leadership, Wiz is expected to play a pivotal role in Google’s push into cloud security.
Antitrust Concerns and Market Dynamics
The acquisition discussions faced hurdles last year, primarily due to antitrust issues and concerns regarding Wiz’s autonomy within Google Cloud. During that time, Wiz was valued at around $12 billion after a successful funding round.
With a new regulatory climate in the U.S., there is optimism that large tech acquisitions may face fewer obstacles than in the past.
Wiz’s Growth Trajectory
Wiz has seen remarkable growth, crossing $500 million in ARR last year and on track to double that figure to $1 billion this year. Following the previous acquisition talks, Wiz conducted a secondary sale at a valuation of $16 billion.
- Investor Backing: Wiz’s investors include prominent firms such as Sequoia, Cyberstarts, Index Ventures, and Salesforce.
- Founders’ Background: The founders of Wiz previously co-founded a security startup that was sold to Microsoft, forming the backbone of its cloud security offerings.
Conclusion: A Bright Future Ahead
At a recent event, Rappaport acknowledged the possibility of future acquisitions but emphasized that Wiz had made the right choice by walking away from the earlier deal. With this acquisition, Google aims to significantly enhance its enterprise cloud capabilities and security offerings, positioning itself as a formidable competitor against AWS and Microsoft Azure.
Stay tuned for further updates as this story develops.
For more insights into cloud security and technology acquisitions, visit TechCrunch or explore our Cloud Security resources.
