Israel
Google buys Israeli unicorn Wiz in country’s biggest tech deal ever
Purchase is also largest by Google parent firm Alphabet
March 18, 2025 16:26
Purchase is also largest by Google parent firm Alphabet
March 18, 2025 16:26Alphabet, the parent company of Google, has agreed to acquire the Israeli cybersecurity group Wiz for $32 billion (£24.7bn), marking the country’s largest ever tech acquisition.
The merger overtakes Intel’s purchase of Mobileye, a Jerusalem-based developer of advanced vision and driver assistance systems, for $15.3 billion in 2017.
The deal highlights Google’s drive to compete with its rivals, Microsoft and Amazon, in the fiercely competitive cloud services sector.
Wiz, which provides a service that scans cloud storage providers like Amazon Web Services (AWS) and Microsoft Azure for security vulnerabilities, had rejected an earlier $23 billion takeover bid from Alphabet last summer.
The discussions fell through, partly due to concerns from Wiz and some of its investors about gaining regulatory approval in the US.
As part of the agreement, Alphabet will pay a $3.2 billion fee if the deal fails to close, in a transaction that will test the appetite of the current US administration to regulate Big Tech.
“From its earliest days, Google’s strong security focus has made us a leader in keeping people safe online,” said Google CEO Sundar Pichai, announcing the agreement. “Today, businesses and governments that run in the cloud are looking for even stronger security solutions, and greater choice in cloud computing providers.”
Dan Ives, an analyst at the US broker and investment manager Wedbush, said: “Wiz has become a household name for chief information officers as the Israeli cybersecurity player has a strong cloud cybersecurity platform and customer base that is going after a $1trn market opportunity.”
Wiz was co-founded by Assaf Rappaport, Yinon Costica, Ami Luttwak and Roy Reznik, the same team that founded the firm Adallom, which was sold to Microsoft for $320 million in 2015. They also led Microsoft Azure’s Cloud Security Group. Its customers include 40 per cent of Fortune 100 companies, such as Slack, Mars, BMW, and DocuSign.
The company, which also has offices in New York and London, provides a comprehensive platform that helps organisations secure their cloud environments. Wiz is backed by prominent venture capital firms including Sequoia, Thrive, and Advent International.
Following the acquisition, Wiz will continue to operate under its own brand and will remain independent of Google,similar to the arrangement that Microsoft has with LinkedIn, according to sources familiar with the deal.
The company will also maintain its presence across all major cloud platforms, including AWS, Azure, and Oracle Cloud.
Wiz’s annual revenues are reported to be $750 million, and analysts believe that Google could help grow this into a $1 billion-plus business over the coming years, driven by its vast global reach and market strategy.
“For Google, this will be a shot across the bow at other big tech stalwarts, especially Microsoft and Amazon, making a major bet on the cybersecurity space to complement its cloud offering,” said Ives added.
Alphabet’s previous largest acquisition was the $12.5 billion purchase of Motorola Mobility in 2012, which it sold two years later for just $2.9 billion.
The company also acquired cybersecurity firm Mandiant for $5.4 billion in 2020 to bolster its Google Cloud division.
Other significant deals include the $1.65 billion purchase of YouTube in 2006 and the £400 million acquisition of UK AI startup DeepMind in 2014.
Alphabet is keen to diversify its revenue streams beyond search advertising. With this acquisition, it hopes to boost its share of the global cloud market, which currently stands at 12 per cent, far behind Microsoft Azure at 21 per cent and Amazon Web Services, which controls nearly a third of the market.