Google in talks to acquire cybersecurity firm Wiz for $30 billion

Google

Alphabet, Google’s parent company, is once again in advanced negotiations to acquire cloud cybersecurity startup Wiz, according to a report by The Wall Street Journal. Last year, Google had made an attempt to acquire Wiz but the two companies were unable to finalise the deal at a $23 billion valuation.

Leading the acquisition effort is Thomas Kurian, head of Google Cloud, which sees Wiz’s cloud security solutions as a strategic addition to its portfolio. According to a report by Tech Crunch, Wiz has also demonstrated strong financial growth, reporting an annual recurring revenue (ARR) of $500 million as of July 2023, with expectations to reach $1 billion in 2025.

Despite its rising valuation, an acquisition at $30 billion would represent a significant premium. Wiz last secured external funding of $1 billion in May 2023 at a valuation of $12 billion, which later increased to $16 billion in an employee tender offer.

Neither Google nor Wiz has made any public comment on the rumoured acquisition.

One of the key hurdles in previous negotiations was whether Wiz would operate independently or be fully integrated into Google Cloud. Assaff Rappaport, co-founder and CEO of Wiz later explained why the company turned down the Google deal. He called it the “toughest decision ever” but wanted to grow the company independently.

Regulatory scrutiny also played a role in shelving the deal, with heightened antitrust enforcement under the Biden administration.

Founded in 2020 by former Israeli military officers, Wiz has quickly become a major player in cloud security. The company is backed by prominent investors including Andreessen Horowitz, Sequoia, Index Ventures, and Insight Partners.