Google Acquires Wiz for $32 Billion, Marking Its Largest Purchase Yet

In a groundbreaking deal, Google has acquired Wiz for $32 billion in an all-cash transaction. This acquisition sets a new record as the company’s most expensive purchase. Additionally, Google is paying $1 billion in retention bonuses to ensure Wiz’s 1,700 employees stay with the company after the acquisition.

Why Google Sees Wiz as a Strategic Asset

Wiz, a major player in cloud security, currently generates $700 million in annual recurring revenue. By acquiring the startup, Google aims to strengthen its enterprise cloud division and compete more aggressively with AWS and Microsoft Azure.

Despite the acquisition, Wiz will continue to operate independently, offering support across all cloud providers, not just Google Cloud. The company also plans to expand its workforce and make further acquisitions to fuel its growth.

Google Cloud CEO Thomas Kurian Drives the Deal

Google Cloud’s CEO, Thomas Kurian, played a key role in finalizing the agreement. He emphasized Google’s mission to simplify and enhance cybersecurity solutions for businesses of all sizes.

“Google Cloud and Wiz share a joint vision to make cybersecurity more accessible and simpler to use for organizations of any size and industry,” Kurian stated.

Assaf Rappaport, Wiz’s CEO, successfully led negotiations, securing a deal that more than doubles Wiz’s $16 billion valuation from a recent secondary sale.

Regulatory Approval and Market Impact

The acquisition is still subject to regulatory approval, with completion expected in 2026. A shift in U.S. regulatory policies may create a more favorable environment for large tech mergers, making this acquisition more viable than Google’s previous $23 billion offer in 2024.

Google’s decision to acquire Wiz aligns with the rapid evolution of AI and cloud security. The company sees Wiz as a crucial addition to its cloud security division while also balancing the risks associated with AI investments.

For Wiz’s investors—including Sequoia, Cyberstarts, and Salesforce—this acquisition represents a significant return on investment.

With Google bringing Wiz into its ecosystem, the cloud security landscape is poised for a major transformation, reinforcing cybersecurity’s growing importance in the AI-driven era.