- Google and Wiz, a New York-based sky security company, signed a “definitive deal” on Tuesday to get Wiz for$ 32 billion in an all-cash offer.
- According to CNBC, Wiz announced to its employees in July that it would rather follow an initial public offering after pulling out of a prospective$ 23 billion acquisition by Google.
- The acquisition will become Google’s largest ever acquisition.
on Tuesday signed a to acquire Wiz, the New York-based cloud security startup, for $32 billion in an all-cash deal, .
In a world where artificial intelligence is rapidly becoming more prevalent, the package, which will be Google’s largest-ever acquisition, will strengthen its cloud protection offering. Wiz may join the agency’s cloud division. Google stated that it anticipates closing the deal in 2026.
Google announced a new leader in cloud infrastructure, citing” Google Cloud “‘s strong AI experience and track record of industry-leading security innovation. ” Taking all this to Wiz will help them improve and expand their answers, bringing benefits to customers and partners from all of the major clouds,” said one source.
The merger comes after Wiz announced to its staff that it would do an initial public offering in place of a possible$ 23 billion acquisition by Google in July, according to CNBC’s report in July.
In a July letter obtained by CNBC, Wiz co-founder Assaf Rappaport wrote to people,” Saying no to for heartbreaking provides is tough.” A source with knowledge of the situation at the time told CNBC that Wiz opted to leave the offer in part because of antitrust and investment concerns.
Before Google and Wiz had been rumored to have discussions, the company had set its sights on two things: an IPO and$ 1 billion in recurring revenue. He stated in the note that the business would work toward those milestones in the time.
With only 18 months of operation, Wiz, which was founded in 2020, has grown steadily under Rappaport, achieving a$ 100 million annual recurring revenue in the process. The company’s portfolio of products for cloud security, which includes prevention, effective detection, and response, has appealed to big companies and would have helped Google contend with , which also sells security software.
According to Google, the cloud companies ‘ products may still function on platforms other than Amazon Web Services, Microsoft Azure, and Oracle Cloud.
Some on Wall Street have been hoping that President Donald Trump’s fresh White House administration will be more open to deals with the tech industry, even though the agreement may also drew government scrutiny. Alphabet is already battling a patent infringement lawsuit because of its net dominance.
The companies were in superior debate, according to the Wall Street Journal’s initial report on Monday.
Jennifer Elias, Jordan Novet, and Rohan Goswami from CNBC contributed to this statement.
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