Archive — US — techcrunch
Google is buying Wiz for up to $33B to beef up in cloud security
Google's parent company, Alphabet, is acquiring cloud security startup Wiz for up to $33 billion, marking its largest acquisition to date. Wiz will operate independently across all cloud platforms, and the deal aims to strengthen Google's position in enterprise cloud and security, where it lags behind competitors. Wiz has $700 million in annual revenue and has been a target for acquisition for nearly a year.
Key points
- Google is acquiring Wiz for $32-$33 billion, the largest acquisition in its history.
- Wiz will remain an independent platform for all cloud providers, not limited to Google Cloud.
- The acquisition will likely lead to more hiring and future acquisitions for Wiz.
- Wiz currently generates $700 million in annual recurring revenue.
- The deal's autonomy is likened to Microsoft and LinkedIn's acquisition relationship.
- Previous negotiations fell through due to antitrust concerns and pricing.
- Changes in regulatory climate under a new U.S. President may facilitate the acquisition.
- Wiz's growth trajectory has improved its valuation over the past year, doubling in ARR.
Why it matters
- This acquisition highlights a trend of increased M&A activity in the tech sector as companies seek to bolster capabilities and market positions in cloud computing and security.
- The competitive landscape in cloud services is evolving, as firms like Google, AWS, and Microsoft Azure vie for dominance.
- Antitrust regulations can significantly impact tech acquisitions, and recent changes in regulatory sentiment may favor larger deals.
- The financial success of companies like Wiz can influence future growth expectations and investment valuations in the technology sector.
The acquisition of Wiz by Google underscores a strategic move to enhance its cloud security offerings while positioning itself competitively against major rivals, reflecting a broader trend of consolidation in the cloud services market.