MOUNTAIN VIEW, Calif. - Google LLC, a subsidiary of the $2.02 trillion market cap tech giant Alphabet Inc., has entered into a definitive agreement to purchase Wiz, Inc., a prominent cloud security platform, for $32 billion in an all-cash deal. According to InvestingPro data, Google’s strong balance sheet, with more cash than debt, positions it well for this strategic acquisition. The transaction, pending customary closing adjustments, will integrate Wiz into Google Cloud upon completion.
The acquisition is a strategic move by Google Cloud to enhance cloud security and support the use of multiple cloud environments, a practice known as multicloud. Wiz’s platform, which is compatible with major cloud services and coding environments, aims to prevent cybersecurity incidents across various organizational scales, from startups to governments. With Google’s robust annual revenue of $350 billion and an impressive gross profit margin of 58.2%, the company has demonstrated its ability to execute large-scale strategic initiatives.
Google Cloud, recognized for its cloud infrastructure and deep AI expertise, plans to leverage these strengths to improve Wiz’s offerings. The merger is designed to deliver an end-to-end security platform, automate security operations, reduce security management costs, and bolster defenses against AI-generated threats.
Wiz will maintain its product availability across all major clouds, including Amazon Web Services, Microsoft Azure, and Oracle Cloud. The Google Cloud Marketplace will also continue to offer a range of partner security solutions.
This deal is still subject to regulatory approvals and other standard closing conditions. Alphabet Inc. (NASDAQ: GOOGL), Google’s parent company, hosted a webcast on Tuesday to discuss the acquisition, featuring statements from Sundar Pichai, CEO of Google and Alphabet, and other executives.
The acquisition underscores the growing importance of cybersecurity in an era where AI advancements and cloud adoption reshape the security landscape. Both Google and Wiz emphasize their commitment to providing secure and accessible cybersecurity solutions to a broad customer base, ensuring protection across various cloud platforms.
This news is based on a press release statement from Google LLC.
In other recent news, Google has announced the successful launch of its first FireSat satellite, part of a planned constellation aimed at enhancing wildfire detection. This project, involving collaborations with several organizations, is expected to provide high-resolution imagery updates every 20 minutes, significantly improving current wildfire monitoring capabilities. Alphabet, Google’s parent company, recently had its stock price target reduced to $210 by TD Cowen, though the firm maintained a Buy rating, citing increased capital expenditures for AI compute capacity as a reason for the adjustment. Google also introduced significant updates to its Gemini app, including advanced features like file upload and a new personalization feature, enhancing its AI capabilities. Furthermore, Google DeepMind unveiled Gemini Robotics, a new AI model for advanced robotics, designed to enable a wide range of robots to perform diverse real-world tasks. In acquisition news, Google is reportedly close to finalizing a $115 million deal to acquire AdHawk Microsystems, a Canadian eye-tracking technology startup, as part of its renewed focus on headsets and smart glasses. This acquisition, if completed, would include contingent future payments based on performance targets. These developments highlight Google’s ongoing efforts to expand its technological capabilities across various domains.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.