Google announced a definitive agreement to acquire the U.S. cybersecurity company Wiz for $32 billion, according to a statement released on Tuesday. This purchase marks the largest acquisition in the history of Google and its parent company, Alphabet, strengthening its presence in the growing cybersecurity market.
The deal, to be paid entirely in cash, will boost Alphabet’s position in the cloud computing sector, which is currently dominated by Amazon and Microsoft. Once the transaction is finalized, Wiz will be integrated into Google Cloud.
“Businesses and governments operating in the cloud need stronger security solutions and a wider range of providers,” said Google CEO Sundar Pichai in the statement. He added that the combination of Google Cloud and Wiz will enhance cloud security and improve multi-cloud capabilities.
Wiz, a startup founded four years ago in New York, develops security tools designed to protect data stored in remote data centers from potential threats. Google had previously expressed interest in acquiring the company, and in fact, Wiz rejected a $23 billion offer last July.
However, the deal still needs to pass antitrust regulatory scrutiny. While some analysts believe the Trump administration may be more receptive to such deals, it has also expressed skepticism toward big tech companies. Additionally, the new chairman of the Federal Trade Commission (FTC), Andrew Ferguson, has strengthened oversight of mergers and acquisitions, maintaining the policies of his predecessor, Lina Khan.
According to sources cited by The Wall Street Journal, Alphabet resumed negotiations after last year’s failed attempt, and the deal could be finalized soon. Wiz, recently valued at $12 billion, is backed by venture capital firms such as Sequoia Capital and Thrive Capital.
If completed, this will be the most expensive acquisition in Alphabet’s history, surpassing the $12.5 billion it paid for Motorola Mobility in 2012 and the $5.4 billion it spent in 2022 to acquire cybersecurity company Mandiant.
