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Google is in advanced talks to acquire cybersecurity firm Wiz for $23 billion, according to a person familiar with the matter who said a deal is expected to close “soon.”
Wiz’s Rapid Growth
Wiz was founded in 2020 and has grown rapidly under CEO Assaf Rappaport. The company had been eyeing an IPO as recently as May, when it achieved a valuation of $12 billion. A representative for Wiz declined to comment. Google did not return a request for comment.
Appeal of Wiz’s Cloud Security Offering
Wiz’s cloud security offering provides executives and cybersecurity professionals insight into a company’s full cloud presence, which is appealing to large firms with significant computing resources. It is backed by a roster of blue-chip firms, including Israeli VC firm Cyberstarts, Index Ventures, Insight Partners, and Sequoia Capital.
Google’s Largest-Ever Acquisition
If completed, the deal would be Google’s largest-ever acquisition, underlining a clear and continued bet on cybersecurity at a time when nation-state and criminal actors have managed to disrupt governments and large organizations. Google has made large cyber acquisitions before: the company acquired cybersecurity firm Mandiant for $5.4 billion two years ago.
Antitrust Scrutiny and Acquisition Practices
Google now faces unprecedented levels of antitrust scrutiny. The Justice Department has sued Google twice on antitrust grounds, and the company’s acquisition practices were highlighted in the most recent litigation, filed in 2023. Despite this, Google’s talks with Wiz suggest the company has developed a fresh appetite for mergers and acquisitions, competitive concerns notwithstanding. Google had been in talks to acquire sales software maker Hubspot, CNBC previously reported, but its pursuit had reportedly cooled.