Google LLC Tuesday announced it has signed a definitive agreement to acquire Wiz, Inc., a leading cloud security platform headquartered in New York, for $32 billion, subject to closing adjustments, in an all-cash transaction. Once closed, Wiz will join Google Cloud.
This acquisition represents an investment by Google Cloud to accelerate two large and growing trends in the AI era: improved cloud security and the ability to use multiple clouds (multicloud).
Both cybersecurity and cloud computing are rapidly growing industries with a vast range of solutions. The increased role of AI, and adoption of cloud services, have dramatically changed the security landscape for customers, making cybersecurity increasingly important in defending against emergent risks and protecting national security.
Wiz delivers an easy-to-use security platform that connects to all major clouds and code environments to help prevent cybersecurity incidents. Organizations of all sizes — from start-ups and large enterprises to governments and public sector organizations — can use Wiz to protect everything they build and run in the cloud. Wiz is an innovative leader and continues to deliver new products with strong adoption, fueling rapid business growth, including over the last 12 months in which it has begun to deliver new categories of cybersecurity solutions.
Google Cloud is a leader in cloud infrastructure, with deep AI expertise and a track record of industry-leading security innovation. Bringing all this to Wiz will help make their solutions even better and more scalable, benefiting customers and partners across all major clouds. The combination of Google Cloud and Wiz will:
Vastly improve how security is designed, operated and automated — providing an end-to-end security platform for customers, of all types and sizes, in the AI era;
Scale cybersecurity teams by providing them an automated security platform;
Lower customers’ cost of implementing and managing security controls;
Protect against new threats emerging due to the advancement of AI, prevent breaches, and help organizations respond to breaches much more efficiently; and
Boost the adoption of multicloud security and, as a result, customers’ ability to use multiple clouds; further spurring innovation in and the adoption of cloud computing.
Wiz’s products will continue to work and be available across all major clouds, including Amazon Web Services, Microsoft Azure, and Oracle Cloud platforms, and will be offered to customers through an array of partner security solutions. Google Cloud will also continue to offer customers wide choice through a variety of partner security solutions available in the Google Cloud Marketplace.
The deal is subject to customary closing conditions including regulatory approvals.
Following the acquisition Wiz will retain its brand and operate independently of Google, in the same way Microsoft operates LinkedIn, according to sources familiar with the deal.
Wiz will also continue to work with, and be available across, all major cloud platforms including Amazon Web Services, Microsoft Azure and Oracle Cloud.
“Together, Google Cloud and Wiz will turbocharge improved cloud security and the ability to use multiple clouds,” said Sundar Pichai, chief executive of Google. “Today, businesses and governments that run in the cloud are looking for even stronger security solutions, and greater choice in cloud computing providers.”
When the company rejected Alphabet’s $23bn offer, Assaf Rappaport, chief executive of Wiz, said he was “flattered” by the offer but wanted to focus on growth with an eye to floating on the stock market instead.
Wiz has said its revenues are $750m annually. Wedbush estimated that Google could drive it to a $1bn-plus business over the coming years “given the company’s massive installed base and go-to-market strategy globally”.
The takeover of Wiz is significantly larger than any previous deal struck by Alphabet.
Three years ago Alphabet paid $5.4bn to acquire cyber security company Mandiant to bolster its Google Cloud product.
Other deals include paying $1.65bn for YouTube in 2006, and UK artificial intelligence startup DeepMind for around £400m in 2014.
Alphabet is keen to diversify its business away from such a dependence on search-related advertising.
The company hopes that Wiz will help it increase its global market share of the cloud market from 12%, a distant third behind Microsoft Azure at 21% and leader Amazon Web Services with almost a third.
“While this deal is expected to see further regulatory scrutiny across the board, we view this as a strategic move by Google to further bolster its cloud security offering and value proposition to enterprises as the company doubles down on its cloud and AI initiatives moving forward,” said Ives.
By Agencies
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