Google eyes security growth in planned $32B Wiz acquisition
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By
Nick Wakeman
The global tech giant undertakes its largest-ever purchase as cloud and artificial intelligence threats evolve.
Google has moved to expand the security aspects of its cloud offering by agreeing to acquire Wiz in a $32 billion all-cash transaction, the global tech giant's largest-ever.
Wiz generates roughly $1 billion in annual revenue with FedRAMP-authorized cloud security products in areas such as prevention, active detection and response.
Google sees the addition of Wiz as helping it support more agencies as they look to move their systems into multi-cloud and hybrid cloud environments.
“At the same time, software and (artificial intelligence) platforms are becoming deeply embedded across products and operations, bringing new and evolving risks for private enterprises, governments, and other public sector organizations,” Google Cloud CEO Thomas Kurian said in a release.
CNBC reported that Google tried to buy Wiz for $23 billion last year, but Wiz told employees at the time that it planned to pursue an initial public offering.
While Google still gets the bulk of its revenue from its search business, the cloud business grew by 30% in 2024 to $12 billion in sales.
The company has also been trying to diversify its offerings beyond search and online advertising offerings. The search business has also been under a cloud of antitrust allegations.
The Justice Department is asking a federal judge to force Google to sell its Chrome browser and potentially Android smartphone operating system.
Within public sector, Google's federal division is a prime contractor to the Defense Department through the Joint Warfighting Cloud Capability program. The National Oceanic and Atmospheric Administration, National Institutes of Health and Patent and Trademark Office are also users of Google's cloud.
By acquiring Wiz, Google also is looking to better compete Microsoft in the cyber landscape as agencies are pushing toward a zero trust approach and stronger supply chain security.
“Cloud is more important than ever, and attackers aren’t slowing down,” said Wiz CEO and co-founder Assaf Rappaport. “They are already using the most innovative technologies to move faster.”
The transaction still must clear regulatory hurdles. All parties involved in the transaction expect it to close sometime in 2026.