Google said it has signed a definitive agreement to acquire Wiz, a fast-growing cloud security platform headquartered in New York, for an all-cash deal of $32 billion – its biggest acquisition ever, surpassing the $12.5 billion it spent to purchase Motorola Mobility in 2012.
In a blog post, Google said that the acquisition served Google Cloud’s requirement to accelerate two large and growing trends in the AI era – improved cloud security and the ability to use multiple clouds (multi-cloud).
Google Cloud’s strategic move
Sundar Pichai, CEO, Google, commented: “From its earliest days, Google’s strong security focus has made us a leader in keeping people safe online. Today, businesses and governments that run in the cloud are looking for even stronger security solutions and greater choice in cloud computing providers.
“Together, Google Cloud and Wiz will turbocharge improved cloud security and the ability to use multiple clouds.”
Wiz will join Google Cloud, which is a separate division from search and advertising operations, which makes up the majority of parent company Alphabet’s $350.2 billion annual revenue.
In August 2022, Wiz became the fastest software start-up to reach $100 million in annual recurring revenue – within 18 months of starting operations.
Accelerating cloud security
Wiz delivers an easy-to-use security platform that connects to all major clouds and code environments to help prevent cybersecurity incidents. Organisations of all sizes – from start-ups and large enterprises to governments and public sector organizations – use Wiz to protect everything they build and run in the cloud. It continues to deliver new products with strong adoption, fueling rapid business growth.
Assaf Rappaport, Co-Founder and CEO, Wiz, added: “Wiz and Google Cloud are fully committed to continue supporting and protecting customers across all major clouds, helping keep them safe and secure wherever they operate.
“This is an exciting moment for our company, but an even more important one for customers and partners, as this acquisition will bolster our mission to improve security and prevent breaches by providing additional resources and deep AI expertise.”
The blog post said that the combination of Google Cloud and Wiz will…
- Vastly improve how security is designed, operated and automated – providing an end-to-end security platform for customers, of all types and sizes, in the AI era.
- Scale cybersecurity teams by providing them an automated security platform.
- Lower customers’ cost of implementing and managing security controls.
- Protect against new threats emerging due to the advancement of AI, prevent breaches, and help organisations respond to breaches much more efficiently.
- Boost the adoption of multi-cloud security and, as a result, customers’ ability to use multiple clouds; which would spur innovation in and the adoption of cloud computing.
The two companies were close to a deal less than a year ago, but the deal fell through. However, it was a much smoother process this time – after Google substantially upped the offer from $23 billion – and with new US President Donald Trump occupying the top office. Trump’s office is said to have accelerated the deal.
Reuters reported that Google saw the premium as justified given Wiz’s 70 per cent annual revenue growth and over $700 million in annualised revenue.
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