The largest acquisition Google has ever made, the owner of Google, , has agreed to buy the cybersecurity company Wiz for$ 32 billion ( £24.7 billion ).
Google’s purchase of the Israeli business comes as it competes with Microsoft and Amazon in the fiercely competitive cloud services business.
A$ 23 billion takeover offer from Alphabet was turned down by Wiz last summer, which offers a service that checks the security risks of the information on cloud storage companies like Amazon Web Services and Microsoft Azure.
Alumni of Unit 8200 of the Jewish Intelligence Corps founded the New York-based company, which opened its German headquarters in London next year. Venture capital firms Sequoia, Thrive, and Advent International are among the owners who have backed it.
According to sources with knowledge of the bargain, Wiz may continue to operate independently of and maintain its product in the same way that Microsoft does Linked In.
Wiz will also work with all of the big cloud systems, including Oracle Cloud, Microsoft Azure, and Amazon Web Services, and be accessible across them.
According to Sundar Pichai, chief executive of Google,” Up, Google Cloud and Wiz will turbocharge improved sky surveillance and the ability to use multiple clouds.” Businesses and governments that operate in the sky are looking for even stronger safety measures and a wider range of cloud computing providers immediately.
Assaf Rappaport, chief executive of Wiz, said he was “flattered” by the present but rather wanted to concentrate on growth with an eye toward floating on the stock market. When the firm rejected Alphabet’s$ 23bn offer, the company instead chose to focus on growth.
He stated on Tuesday that this is an exciting time for the business but also that it is even more crucial for its customers and partners.
Wedbush, a broker and investment manager in the US, said:” Wiz has become a household name for chief information officers because the Israeli cybersecurity player has a strong cloud cybersecurity platform and customer base that is looking for a$ 1 trillion market opportunity.
For Google, making a significant wager on the security sector to enhance its fog offering, will [be a chance across the bow at another big tech stalwarts, especially Microsoft and Amazon.
According to Wiz, its revenues are$ 750 million annually. Given the company’s massive installed base and go-to-market strategy globally, Wedbush predicted that Google could “drive it to a$ 1 billion-plus business over the upcoming years.”
The acquisition of Wiz is more significant than any other deal Alphabet has ever done.
following the development of the email
The bank’s most notable merger in the past was its$ 12.5 billion purchase of Motorola Mobility in 2012, which it sold for$ 2.9 billion two years later.
In order to improve the Google Cloud solution, Alphabet paid$ 5.4 billion to Mandiant, a cyber security firm, three years ago.
Other agreements include a$ 1.65 billion acquisition of YouTube in 2006 and a$ 400 million purchase of British business DeepMind in 2014.
Alphabet wants to expand its business so that it is no longer dependent on search-related marketing.
The business hopes Wiz will help it increase its global market share of the cloud market from 12 %, a close second behind Microsoft Azure ( 21 % ) and Amazon Web Services, which is the market leader by almost a third.
We view this as a strategic move by Google to more bolster its cloud security offering and value proposition to organizations as the company doubles down on its cloud and AI efforts going forward, said Ives.