Google in Talks to Acquire Cloud Security Company Wiz for $23 Billion

Google's parent company, Alphabet, is reportedly in advanced talks to acquire the cloud security company Wiz for approximately $23 billion. If this deal goes through, it would be Google's largest acquisition ever.

Previously, it was reported that Alphabet was in talks to acquire HubSpot, which too was said to be Google's biggest acquisition ever, if happened. However, the deal was eventually shelved by Alphabet Inc.

The Wall Street Journal reports that Alphabet is in advanced talks to acquire Wiz for around $23 billion. While the deal isn't finalized, the WSJ says it could come together soon.

Wiz offers an all-in-one approach to cloud security, scanning data from major cloud platforms like Amazon Web Services, Microsoft Azure, and Google Cloud for security risk factors. The move could strengthen Google's cloud business, which saw a 28% growth to $9.57 billion in Q1 2024. Wiz, founded by former Microsoft employees, had recently raised $1 billion in a Series E funding round at a $12 billion valuation.

Wiz provides a single cloud security command center for full control. It covers various security domains, including: Container & Kubernetes, Continuous Workload Protection (CWPP), Compliance, Vulnerability Management, Cloud Entitlements Analysis (CIEM), Misconfiguration Detection (CSPM), Sensitive Data Protection (DSPM) and Infrastructure as Code (IaC) Scanning.

Wiz connects to every cloud environment (AWS, Azure, Google Cloud, etc.) and scans every layer, even elements that typically require installing agents.

Originally established in Israel and now headquartered in New York, Wiz specializes in cloud-based cybersecurity services. Its offerings include artificial intelligence-driven real-time threat detection and response systems. In 2023, Wiz generated approximately $350 million in revenue, and its clientele reportedly includes 40% of Fortune 100 companies.

Wiz recently secured $1 billion in a funding round, which brought its valuation to $12 billion. Investors included Andreessen Horowitz, Lightspeed Venture Partners, and Thrive Capital.

Wiz's operations span across various cloud platforms, including services from Microsoft and Amazon. Its diverse customer base includes companies like Morgan Stanley and DocuSign.

This potential acquisition aligns with Alphabet's strategic moves in the tech sector, especially as regulatory scrutiny on Big Tech mergers continues under the current US administration.
Advertisements

Post a Comment

Previous Post Next Post