Google Seals $32B Wiz Deal After Last Year’s Failed $23B Bid

Key Takeaways

• Google parent Alphabet is set to buy the cloud security firm Wiz for $32 billion.
• The deal comes after Wiz’s founder rejected Alphabet’s previous $23 billion offer.
• Wiz will be Alphabet’s largest acquisition to date.

Eight months after the cloud cybersecurity startup Wiz walked away from Alphabet’s $23 billion acquisition offer, the Google parent has sealed the deal with a new $32 billion bid.

The deal marks Google’s biggest purchase ever , more than doubling the previous record of $12.5 billion it paid for Motorolla Mobility in 2011.

Wiz Founders’ Negotiations Pay Off

After Google offered to buy the startup for $23 billion last year, Wiz CEO Assaf Rappaport reportedly told staff that “while we are flattered by offers we have received, we have chosen to continue on our path to building Wiz”.

“Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice,” he added.

Instead of pursuing a deal with Google, Rappapor said Wiz would focus on preparing for an IPO instead.

In the end, an IPO never materialized and Google ended up offering an even higher price, which this time, Wiz’s founder accepted.

The Fastest-Growing Software Company Ever

For Wiz’s 4 co-founders, the startup’s multi-billion dollar valuation marks the second time they have built a successful cybersecurity venture, having previously sold Adallom to Microsoft for $250 million in 2015.

Like Adallom before it, Wiz provides security services for enterprises’ cloud operations. Thanks to its founders’ proven track record in the space, the company rapidly closed a $100M Series A just nine months after its founding.

Within another five months, in May 2021, that round was followed by a $120 million Series B that valued Wiz at $1.7 billion.

In August 2022, the company had reached $100 million in annual revenues, a feat it managed to achieve faster than any software company previously.

It then generated around $350 million in 2023, helping it secure an additional $1 billion investment in May 2024 at a $12 billion valuation.

Wiz Company Overview

Emerging out of Israel’s thriving cybersecurity sector, Wiz’s strong financials stem from the success of its primary software platform—Wiz Cloud.

Aimed at companies that need to manage often-complex cloud operations across multiple providers, Wiz Cloud connects to platforms operated by Amazon Web Services (AWS), Microsoft, Google and others, providing important visibility for security purposes.

Reflecting a wider trend in cybersecurity, integrated artificial intelligence helps detect vulnerabilities, misconfigurations, and compliance issues in real-time, allowing organizations to address potential threats before they can be exploited.

In just a few years, Wiz has acquired a string of major clients and counts companies such as DocuSign, Snowflake, and Salesforce among its users.

Google’s Interest in Wiz

For Alphabet, Wiz’s platform has synergies with the extensive range of Google Cloud services. There is also precedent for Big Tech firms snapping up cloud security startups to bolster their existing offerings.

Since 2015, Adallom has been rebranded as Microsoft Defender for Cloud. Meanwhile, although it retained the Mandiant brand, Alphabet now operates the incident management software and consultancy services it acquired in 2022 as a sub-branch of its wider cloud security suite.

Among the 3 largest cloud providers, Google is currently outmuscled by Microsoft and AWS.

According to Statista , while AWS and Microsoft took a 30% and 21% share of the global market in Q4, 2024, Google’s share was just 12%. Yet all three are spending billions to ensure their continued success as AI transforms the cloud market.

Despite being the smallest of the major hyperscalers, Google’s market share has been growing in recent years and the firm’s spending on cloud security could help it compete with its Big Tech cloud rivals.