Islamabad, March 19: Google has announced its decision to acquire rapidly growing cybersecurity firm Wiz for $32 billion, marking the tech giant’s largest-ever acquisition.
This all-cash deal signals Google’s significant commitment to cloud security and cybersecurity as artificial intelligence continues to grow at an explosive rate.
The acquisition of Wiz, which still requires regulatory approval, easily surpasses Google’s previous biggest acquisition, which was the 2012 purchase of Motorola Mobility for $12.5 billion — a deal that Google later sold at a significant loss.
Google Largest Purchase – Wiz, Profile
Wiz, a cybersecurity software company focused on cloud computing, had previously been in talks with Google last summer for a $23 billion acquisition, but those discussions fell through, and the company announced plans to focus on an initial public offering (IPO).
Since its founding just five years ago, Wiz has seen rapid growth, attracting attention for its cutting-edge cybersecurity tools.
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It was founded by Assaf Rappaport, Ami Luttwak, Yinon Costica, and Roy Reznik, who all met while serving in Unit 8200, the cyber intelligence division of the Israeli Defense Forces.
In a blog post, Rappaport emphasized the fast-paced nature of cybersecurity and the need for Wiz to continue evolving. “Wiz has achieved so much in a relatively short period, but cybersecurity moves at warp speed and so must we.
7th Largest Purchase of US Company
The time is now,” he said. At $32 billion, the acquisition places Wiz as the seventh-largest purchase of a private US company, according to Dealogic.
The deal comes at a time when Wall Street hopes it may signal a resurgence in dealmaking, which has slowed in recent months due to market volatility and declining CEO confidence.
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Some experts speculate that the acquisition may be part of a broader recovery in Big Tech mergers and acquisitions (M&A), particularly with the departure of Lina Khan, the former Federal Trade Commission (FTC) chair known for her tough stance on antitrust matters.
Dan Ives, global head of technology research at Wedbush Securities, noted that the exit of Khan could pave the way for a more favorable environment for mega mergers.
While the deal may be welcomed by many, some Republicans, including Vice President JD Vance, previously praised Khan’s antitrust actions, stating that she had been one of the few members of the Biden administration performing well in this regard.
