Google is buying Wiz for $32 billion in cash to strengthen its cloud security game. This makes it Google’s biggest acquisition ever.
The deal also includes $1 billion in retention bonuses to keep Wiz’s 1,700 employees on board.
The deets: Wiz is one of the fastest-growing cybersecurity startups, pulling in $700M in annual recurring revenue and expected to hit $1B next year.
The acquisition gives Google Cloud a much-needed boost in enterprise security, a space where AWS and Microsoft Azure dominate. This isn’t Google’s first cybersecurity play, it previously bought Mandiant for $5.4B.
Why it matters: Cloud security is more critical than ever as AI adoption skyrockets, and Google wants a bigger piece of the market.
Worth noting: a year ago, Wiz had walked away from a $23B Google offer. Now, it’s cashing in at double its 2024 valuation.
Zoom out: with Donny in office and FTC Chair Lina Khan gone, big tech deals are back on the table. This acquisition signals that Google is willing to spend big to close the gap in cloud, and investors will be watching closely to see if it pays off.
