Google Nearing Largest Acquisition Ever with Cybersecurity Firm Wiz

Alphabet Inc.’s Google is reportedly on the brink of finalizing a monumental $23 billion deal to acquire the cybersecurity company Wiz, marking its most substantial purchase to date as disclosed by sources.

The potential acquisition, said to be in advanced discussions, could be disclosed imminently, according to individuals familiar with the situation. Wiz, established four years ago and having secured $1.9 billion from investors like Sequoia Capital and Index Ventures, was contemplating an IPO earlier this year under the leadership of Assaf Rappaport. By then, Wiz’s market valuation had surged to $12 billion.

Wiz’s cloud security platform has stood out for identifying security vulnerabilities in other firms, notably uncovering a flaw in Microsoft‘s Bing search engine in May 2023 that could have enabled hackers to manipulate search results and access private data.

Google is zeroing in on Wiz amidst a multitude of cyber threats and attacks that have targeted governmental agencies and prominent enterprises, sparking concerns among cybersecurity experts. Google’s acquisition of Mandiant for $5.4 billion in 2022 underscored its commitment to cybersecurity.

Experts suggest that Google’s interest in Wiz aligns with its broader security strategy, positioning Wiz as a key player in enterprise cloud security solutions, covering areas such as container security, software supply chain security, code and data security, among others. With Mandiant’s threat detection capabilities and Wiz’s cloud security expertise, Google aims to solidify its position in the cybersecurity market.

Google’s pursuit of Wiz comes at a critical juncture, amidst heightened antitrust scrutiny of major tech companies, including Google. Speculations around Big Tech M&A activities are rife, especially with the potential return of Donald Trump to the White House, which could lead to relaxed regulatory oversight and a surge in mega-deals starting in 2025.

Jon Swartz, a seasoned tech journalist now associated with Techstrong Group, has covered Silicon Valley extensively and has in-depth experience in technology reporting across various publications.