Google in advanced talks to acquire cloud security firm wiz for up to $23 Billion
Alphabet’s Google is reportedly in advanced negotiations to acquire Wiz, a leading cloud security company, in a deal that could reach up to $23 billion. This acquisition, if successful, would significantly enhance Google’s cloud security capabilities, positioning it to better compete with rivals Amazon and Microsoft in a rapidly evolving cybersecurity landscape.
According to sources familiar with the discussions, the acquisition would mark Google’s largest purchase to date and provide essential cybersecurity products to defend against rampant ransomware attacks targeting large organizations.
“There is a hot market for cloud security,” noted Jerome Seguera, a senior intelligence analyst at MalwareBytes. He emphasized that Wiz offers users “great visibility into their assets in a straightforward way,” essential for modern enterprises.
Founded in 2020 during the pandemic, Wiz has developed tools that allow companies to comprehensively scan their infrastructure and software for potential threats. The firm has rapidly gained traction, recently valuing itself at $12 billion during the RSA cybersecurity conference.
Marc Bleicher, CTO of Surefire Cyber, pointed out that Google’s move to acquire Wiz indicates a strategic push to compete with Microsoft and, to a lesser extent, Amazon Web Services. He described Wiz as one of the few companies that provide a comprehensive cloud security solution on a single platform.
Wiz’s founders, former Israeli army intelligence members, previously established Adallom, which was acquired by Microsoft for $320 million in 2015. The company has attracted nearly $2 billion in venture capital and is projecting annual revenue of $1 billion by 2025.
The potential acquisition comes amid a surge in global cybersecurity dealmaking, with 120 transactions reported in the first half of 2024, totaling $12.4 billion. This reflects a significant increase in investment compared to the same period last year.
Dave Dewalt, founder of NightDragon, highlighted Wiz’s rapid growth as a testament to effective marketing and timely product relevance in the face of rising security challenges. He noted that cloud security is the fastest-growing segment within the cybersecurity field, driven by increasing attacks on large enterprises.
“The stakes are exponentially higher in the cloud, necessitating stronger security measures,” Dewalt stated, adding that competitors like Palo Alto Networks and CrowdStrike have also expanded their cloud security offerings in recent years.
As Google seeks to bolster its cloud infrastructure, the acquisition of Wiz could prove pivotal in safeguarding large organizations while reinforcing its position against formidable industry rivals.
