Alphabet Inc., the parent company of Google, is in advanced talks regarding its acquisition of Wiz, a prominent cybersecurity startup, in a deal valued at $23 billion.
If finalized, the transaction would be Alphabet’s largest purchase of a company, dwarfing its past acquisitions including Mandiant for $5.4 billion and Fitbit for $2.1 billion, according to SEC records.
About WIZ, the Acquisition Target
Wiz, based in Israel but headquartered in New York, is known for its unique approach to cloud security. Its technology specializes in helping businesses identify potential vulnerabilities in their cloud infrastructure.
The acquisition is an important step for Google Cloud that will work towards keeping companies safe from cyber attacks. Additionally, Wiz’s technology may open more markets for Google as well as expand their book of business with existing customers.
Wiz was founded in early 2020 by Israeli residents CEO Assaf Rappaport, CTO Ami Luttwak, VP Product Yinon Costica, and VP R&D Roy Reznik.
If the sale goes through, the founders will pocket around $2 billion each, according to CTech.
The high-profile purchase underscores the growing importance of cybersecurity in the digital age — especially as businesses increasingly rely on cloud services to store and manage their data. With cyber threats becoming more sophisticated and prevalent, companies are prioritizing investments in cybersecurity measures to safeguard their sensitive information.
Cybersecurity In The Spotlight
A study done by The University of Maryland’s School of Engineering in 2024 found that 2,200 cyber attacks happen daily. This figure means that somebody becomes a victim of a cyber attack every minute. Cyber Attacks can be anything from phishing, data breaches, or hacking.
A global cybersecurity report found that companies take a 9% hit in finances every year due to cyber attacks.
Wiz has gained traction in the cybersecurity sector with its unique approach to cloud security. Its platform offers automated threat detection and response capabilities, allowing businesses to proactively identify and mitigate potential risks.
Google’s Biggest Acquisition Yet
Industry analysts suggest that Alphabet’s acquisition of Wiz could potentially strengthen Google Cloud’s position in the competitive cloud market, attracting more enterprises looking for comprehensive cybersecurity solutions.
Currently, Wiz supports 40% of Fortune 500 companies. WIZ reported $350 million in revenue in 2023 as well as plans to hire 400 additional employees in 2024.
As Alphabet integrates Wiz into Google Cloud, industry observers will be watching how this acquisition shapes cybersecurity offerings. With cybersecurity concerns continuing to evolve rapidly, Alphabet’s investment in Wiz highlights their proactivity and long-term ambitions in the cloud computing and cybersecurity space.
“We will never stop innovating on behalf of our customers. Wiz has worked to earn the love of security and development teams,” said WIZ CEO Assaf Rappaport.
In a May 2024 press release, WIZ announced that they are celebrating their $12 billion valuation, the largest ever by an Israeli company. They thank their employees, customers, investors, and partners.
“The Wiz story is still being written. Cybersecurity moves at warp speed, and so must we. Our quest to build a platform that security and development teams love,” the company’s statement said.
