In a record-breaking deal, Google’s parent company, Alphabet, has officially acquired cloud security firm Wiz for $32 billion in an all-cash transaction. This move marks Google’s largest acquisition to date and underscores its commitment to strengthening its position in cloud security amid growing competition from AWS and Microsoft Azure.
This acquisition has been in discussions for nearly a year, with an earlier reported price of $33 billion, including $1 billion in retention bonuses designed to keep Wiz’s 1,700 employees on board post-acquisition. On average, each employee stands to receive around $588,000 in additional compensation, although the exact figures will vary based on individual roles.
Wiz to Maintain Independence Under Google Cloud
Despite the acquisition, Wiz will continue to operate independently, supporting multiple cloud environments—including AWS, Azure, and Google Cloud Platform (GCP). Maintaining this multi-cloud approach is a key part of the agreement, as Wiz has built its reputation on providing security solutions across different cloud providers rather than being locked into one ecosystem.
Google plans to scale Wiz’s business further, investing in additional talent and future acquisitions to strengthen its cybersecurity infrastructure. Wiz, which has already been exploring its own acquisition targets over the past year, is expected to expand its reach under Google’s leadership.
At the time of the acquisition, Wiz had achieved $700 million in annual recurring revenue (ARR) and was on track to surpass $1 billion within the next year. Insiders describe this deal as similar to Microsoft’s purchase of LinkedIn, where Wiz will retain operational independence while leveraging Google’s vast resources.
However, history has shown that even “independent” acquisitions tend to become more integrated over time. LinkedIn, for instance, gradually incorporated Microsoft’s cloud and AI tools into its operations, a pattern that Wiz may follow with Google Cloud’s security suite.
Regulatory Approvals & Timeline for Completion
The acquisition is subject to regulatory review, and Google anticipates closing the deal in 2026. Given the current regulatory landscape, analysts believe that the new U.S. administration may take a more lenient stance on large tech acquisitions, particularly in cybersecurity—a sector increasingly tied to national security concerns.
Interestingly, this isn’t Google’s first attempt at acquiring Wiz. Back in 2024, Alphabet made an offer of $23 billion, but negotiations stalled over concerns regarding potential antitrust scrutiny, Wiz’s independence within Google Cloud, and pricing disagreements. At that time, Wiz had been valued at $12 billion following a $1 billion funding round.
Since then, Wiz’s valuation has surged. In a 2024 secondary sale, the company was valued at $16 billion, meaning this acquisition doubles that figure, delivering a massive return for its investors.
Google’s Strategic Push into Cloud Security & AI
Google’s decision to acquire Wiz is part of a larger strategy to strengthen its enterprise cloud business while expanding its footprint in cybersecurity. According to Google Cloud CEO Thomas Kurian, who led the acquisition:
“Google Cloud and Wiz share a common mission: making cybersecurity more accessible and effective for organizations across all industries. By preventing cyber threats in complex software environments, we help businesses reduce risk and improve resilience.”
With AI adoption skyrocketing, the cybersecurity landscape is evolving rapidly. Google believes that Wiz will play a crucial role in addressing these challenges, particularly as companies rely more on cloud-based AI applications.
Additionally, this acquisition complements Google’s previous security investments, such as Mandiant, which it acquired in 2022 for $5.4 billion. While Mandiant focuses on threat intelligence and response, Wiz specializes in cloud-native security, making it a perfect addition to Google’s security offerings.
What This Means for the Cybersecurity Market & Wiz’s Investors
For investors, this deal represents an enormous financial win. Wiz has been backed by major firms such as Sequoia, Cyberstarts, Index Ventures, Salesforce, Thrive Capital, and Greenoaks, all of whom stand to see substantial returns on their investments.
Rumors suggested that Wiz had been exploring new funding rounds at even higher valuations, but this acquisition provides a faster, high-value exit for shareholders.
On a broader scale, Google’s move signals a trend of increased consolidation in cybersecurity, as major cloud providers race to expand their security capabilities. The demand for robust, AI-driven security solutions is growing, making Wiz a key asset for Google’s future plans.
What’s Next for Wiz Under Google?
While Wiz will continue to operate independently, its long-term integration with Google Cloud seems inevitable. Over time, Google is expected to incorporate Wiz’s advanced security tools into its broader AI-driven cybersecurity initiatives.
For the industry at large, this acquisition suggests that more big-ticket security deals may be on the horizon as cloud and AI technologies continue to reshape business operations.
As regulatory approvals move forward, we’ll be watching closely to see how Wiz’s position within Google evolves. Will it remain a truly independent platform, or will it become an integral part of Google Cloud’s security ecosystem?
Stay updated as new developments emerge!