Google has made its biggest acquisition ever. The tech giant is acquiring Wiz, a cloud security startup, for $32-33 billion. This move aims to strengthen Google Cloud’s security offerings.
Wiz to Remain Independent
Despite the acquisition, Wiz will continue to operate as an independent platform. It will support all cloud providers, not just Google Cloud. More hiring and further acquisitions are expected to expand its business.
Financial and Strategic Growth
Wiz currently generates $700 million in annual recurring revenue. This deal is being compared to Microsoft’s acquisition of LinkedIn in terms of autonomy. However, regulatory approvals are still required before the deal is finalized.
Previous Acquisition Attempts
Last year, Google attempted to acquire Wiz for $23 billion. However, concerns over antitrust issues and Wiz’s independence led to the deal falling apart. At that time, Wiz was valued at $12 billion after a $1 billion funding round.
Impact on Google Cloud
Google has long sought to enhance its cloud security. This acquisition will help it compete with AWS and Microsoft Azure. Wiz’s expertise in cybersecurity will accelerate Google’s enterprise cloud expansion.
Growing Market Valuation
After the failed acquisition last year, Wiz secured a $16 billion valuation. The company is expected to reach $1 billion in revenue this year. Its founders previously built and sold a security startup to Microsoft, which became a key part of its cloud security division.
Future of Wiz Under Google
While Wiz’s CEO previously walked away from the deal, this acquisition now seems like a strategic win. With growing revenues and Google’s backing, Wiz is set to shape the future of cloud security.