Alphabet, the owner of Google, has agreed to purchase Cybersecurity Group Wiz for $32 billion (£24.7 billion).
Google is acquiring an Israeli startup in an effort to compete with rivals Microsoft and Amazon in the cloud services market.
Wiz provides services that scan data from cloud storage providers like Amazon Web Services and Microsoft Azure for security risks. It previously turned down Alphabet’s $23 billion bid last summer.
However, concerns about regulatory approval caused some issues with the initial bid.
If the deal falls through, Alphabet has agreed to pay a $3.2 billion fee. This acquisition indicates a test of the Trump administration’s willingness and shows President Biden’s leadership in acquiring major technology companies.
Alphabet is currently facing pressure from US Department of Justice officials to sell off its Chrome browser to address concerns about its dominance in the search market.
Wiz, founded in 2020 by graduates of the Israeli Intelligence Corps, has offices in New York and Israel, with its European headquarters in London.
Despite the acquisition, Wiz will operate independently from Google, similar to how Microsoft operates LinkedIn.
Wiz will continue to collaborate with major cloud platforms such as Amazon Web Services, Microsoft Azure, and Oracle Cloud.
Wiz co-founder and CEO Assaf Rappaport will remain in his position until October 2024. Photo: Bloomberg/Getty
“We’re excited for the future,” said Sundar Pichai, Google’s CEO. “Google Cloud and Wiz will enhance cloud security and multi-cloud capabilities. Businesses and governments operating in the cloud seek stronger security solutions and a wider range of cloud computing providers.”
Startup CEO Assaf Rappaport previously rejected Alphabet’s $23 billion offer to focus on growth and potentially going public.
Analyst Dan Ives from Wedbush commented on the acquisition, highlighting Wiz’s strong presence in the cloud cybersecurity industry.
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Google’s move to acquire Wiz is seen as a strategic step to compete with other tech giants like Microsoft and Amazon in the cloud security space.
Wiz currently generates $750 million in annual revenue, and Google aims to capitalize on the company’s market position for future growth.
Alphabet’s previous acquisitions include Motorola Mobility, Mandiant, YouTube, and Deep Mind as part of its strategy to diversify from search-related ads.
With Wiz’s expertise, Alphabet hopes to gain a larger share of the global cloud market, currently lagging behind Microsoft Azure and Amazon Web Services.
Analyst Dan Ives sees Google’s acquisition of Wiz as a strategic move to enhance cloud security offerings and drive cloud and AI initiatives forward.
Source: www.theguardian.com
