Google's Parent Entity, Alphabet, Agrees To Acquire Cybersecurity Start-Up Wiz For $32 Billion: Report

No public comment has yet been made by either Alphabet or Wiz regarding the acquisition. If finalised, the deal would significantly strengthen Google's cloud business.

The report said that the deal is expected to be announced soon on March 18.

Source : Glassdoor

Google's parent company, Alphabet, has reportedly agreed to buy cybersecurity start-up Wiz for at least $32 billion, The Financial Times reported on Tuesday. 

Citing sources familiar with the matter, the report said that this could be the largest acquisition made by Alphabet yet. Reportedly, the company offered $23 billion to acquire Wiz a year earlier during initial talks.

The report said that the deal is expected to be announced soon on March 18. The earlier deal was turned down by the Israeli company citing concerns over possible antitrust challenges, reported Reuters. At the time, Wiz informed employees in an internal memo that it planned to pursue an initial public offering instead. 

No public comment has yet been made by either Alphabet or Wiz regarding the acquisition. If finalised, the deal would significantly strengthen Google's cloud business by integrating Wiz’s AI-driven cybersecurity solutions. This acquisition would enhance Google’s ability to compete with cloud industry leaders Amazon and Microsoft.

Potential Regulatory Challenges

The Wall Street Journal first reported the news of the ongoing discussions, citing several sources. If Alphabet successfully acquired Wiz, it would mark a major expansion into the cybersecurity market, bolstering its cloud infrastructure division, which generated over $43 billion in revenue in the previous year.

Although US President Donald Trump’s administration is widely expected to ease some antitrust policies implemented under former President Joe Biden, a merger of this scale in the cybersecurity sector was still likely to face regulatory scrutiny.

Wall Street earlier anticipated an increase in mergers and acquisitions following Trump’s election, but ongoing trade policies and tariffs threatened by the President have introduced uncertainty in the financial markets, impacting major corporate decisions.

Wiz’s Role in the Growing Cybersecurity Industry

Wiz specializes in AI-driven, cloud-based cybersecurity solutions designed to detect and eliminate critical risks on cloud platforms. The company has worked with major cloud service providers, including Microsoft and Amazon, and served clients such as Morgan Stanley and DocuSign.

It currently operates a global workforce of 900 employees across the United States, Europe, Asia, and Israel and also announced plans to hire an additional 400 employees in 2024.