Alphabet to buy cybersecurity startup Wiz for US$32 billion in biggest deal to boost cloud security
Interest in the cybersecurity industry has surged since the global CrowdStrike outage last year, making enterprises more concerned about protecting their digital infrastructures
[BENGALURU] Google-parent Alphabet said on Tuesday (Mar 18) it would buy Wiz for about US$32 billion in its biggest deal as the Google parent doubles down on cybersecurity to sharpen its edge in the cloud-computing race against Amazon.com and Microsoft.
The all-cash buyout comes after Wiz rejected a US$23 billion bid from Alphabet last year due to concerns about antitrust approvals and its aim to focus on an initial public offering.
Acquiring Wiz will help Google bolster its cloud business with AI-powered cybersecurity solutions that companies use to remove critical risks, helping it compete better in an industry benefiting from the rise of generative AI services like ChatGPT.
“Cloud is more important than ever, and attackers are not slowing down. They are already using the most innovative technologies to move faster,” said Wiz CEO and co-founder Assaf Rappaport, who had called Google’s previous offer “humbling”.
While a tough regulatory climate in 2024 had hampered such large-scale deals, Wall Street is optimistic that a shift in antitrust policies under US President Donald Trump could reignite dealmaking momentum.
One of the fastest-growing software startups, Wiz was valued at US$12 billion in a funding round last May. It works with cloud providers such as Amazon Web Services, Microsoft’s Azure as well as Google Cloud and counts Morgan Stanley, BMW and luxury powerhouse LVMH among its customers.
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After the deal closes, Wiz will join Google Cloud business which generated more than US$40 billion in revenue in 2024 and has outpaced growth in the search business in the recent years.
Wiz’s products will continue to be available across all other major cloud services. Alphabet expects the deal to close in 2026, subject to regulatory approvals.
DA Davidson analyst Gil Luria said the higher price is based on another year of exponential growth for Wiz.
“For Google to be able to compete with Microsoft Azure for enterprise customers, it needs to be able to offer a deeper suite of services, including security software,” he said.
This is the not the first time Google has struck a big deal for a cybersecurity company. In 2022, it bought Mandiant for US$5.4 billion, outbidding Microsoft in a high-stakes contest.
Interest in the cybersecurity industry has been rising since last year’s global CrowdStrike outage roiled operations across industries, prompting companies to spend more on safeguarding their online domains.
Google had US$23.47 billion in cash and cash equivalents as of Dec 31, implying it might have to seek financing for the deal.
The company, which has kept aside US$75 billion in capital expenditure for 2025 mostly for AI investments, said on Tuesday its capital allocation plans remain unchanged.
Shares of Google were down nearly 3 per cent in early trading amid broader market weakness. They had risen about 35 per cent last year, but have lost 13 per cent this year on investor worries over its hefty AI spending against the backdrop of China’s lower-cost DeepSeek. REUTERS
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