Google to Acquire Cloud Security Developer Wiz for $32 Billion in Biggest Deal in History

Google has announced the acquisition of cloud security startup Wiz for $32 billion in cash. The deal will be the largest in Google’s history.

Image source: wiz.io

Wiz will remain an independent platform that can work with all cloud providers, not just Google Cloud. The new owner will expand the division and potentially acquire several other companies, something Wiz has been working on for the past year. Wiz currently has an unofficial annual recurring revenue of $700 million. The deal would be similar to Microsoft’s acquisition of professional social network LinkedIn: The startup would retain significant autonomy, but could integrate more Google services over time. Google’s largest acquisition to date was Motorola Mobility in 2011 for $12.5 billion.

Last year, Google made a $23 billion takeover bid for Wiz, but talks fell apart over concerns about antitrust compliance, disagreements over Wiz’s autonomy, and possibly even the price, according to unofficial reports. The startup had raised $1 billion at a $12 billion valuation just before the talks. Shortly after the deal fell through, the company raised more money at a $16 billion valuation, with rumors circulating that another round was in the works at a higher valuation.

Google is interested in acquiring Wiz to strengthen its cloud division, which continues to lag behind competitors AWS and Microsoft Azure, as well as in the field of security solutions, where Google already has a number of products, but none of them have the scale of Wiz. The startup’s business is growing rapidly: last year, its profit exceeded $500 million, and it is likely to double this year to reach $1 billion. Last year, when negotiations with Google ended without results, Wiz CEO Assaf Rappaport did not rule out the possibility of a deal in the future. He also noted that it was his company that turned down the offer, calling it “the most difficult decision in history,” but at the same time “the right choice.”