Google's parent company, Alphabet, has confirmed its acquisition of cloud security startup Wiz for $32 billion in an all-cash deal, marking Google's largest acquisition to date. The transaction includes an additional $1 billion in retention bonuses for Wiz's 1,700 employees, averaging over $588,000 per employee. Wiz will operate independently across all cloud platforms, not limited to Google Cloud, and plans to expand its workforce and pursue further acquisitions.
Currently, Wiz generates $700 million in annual recurring revenue and is expected to double this figure to $1 billion. The acquisition is likened to Microsoft's purchase of LinkedIn, emphasizing Wiz's autonomy within Google. Regulatory approvals are required before the deal can close, anticipated in 2026.
Previous negotiations for Wiz began at $23 billion but stalled due to antitrust concerns and autonomy issues. The new U.S. regulatory environment may favor large tech acquisitions. Google aims to enhance its enterprise cloud and security capabilities through this acquisition, addressing its competition with AWS and Microsoft Azure.
Wiz's founders have a history of successful exits, and the acquisition significantly increases Wiz's valuation from $16 billion to $32 billion, benefiting its investors. The CEO of Google Cloud, Thomas Kurian, is leading the integration of Wiz, focusing on making cybersecurity more accessible for organizations.
