Alphabet Acquires Israeli Startup Wiz for 32 Billion USD in Historic Deal
Finance Outlook India Team | Wednesday, 19 March 2025
Alphabet, the parent company of Google made a historic acquisition of Israeli cybersecurity startup Wiz as it paid a record 32 billion USD in cash. On March 18th 2025 Google announced its largest acquisition ever by purchasing Wiz for 32 billion USD thus strengthening its cloud security capabilities. Regulatory clearance still needs to be obtained for this transaction even though it follows the unsuccessful Wiz acquisition attempt during 2024 which demonstrated changing tech acquisition patterns under U.S. administration leadership.
Wiz launched in 2020 under co-founders who previously served in the Israeli military to become a quick-growing leader in cloud-based cybersecurity solutions. A May 2024 funding round valued Wiz at 12 billion USD as the company demonstrated 700 million USD annual revenue and 70% yearly growth. The acquisition brings Google Cloud additional capabilities but the platform developed by Wiz continues to function independently after the deal using every major cloud provider. Google CEO Sundar Pichai emphasized the strategic fit, stating, “AI brings new risks, but also new opportunities,” underscoring the deal’s focus on securing cloud systems in an AI-driven era.
The acquisition process has shown significant difficulties and disturbances. Alphabet made a 23 billion USD deal for Wiz in July 2024 but the negotiations failed after Wiz went ahead with their initial public offering (IPO). The acquisition faced difficulties during the previous U.S. administration because the regulatory framework became strict and ruled out mergers based on antitrust reasons. The deal experienced a comeback in 2025 through a new 32 billion USD proposal and a substantial 3.2 billion USD payment if negotiations were canceled. Experts believe that the population expects Donald Trump's presidency will result in relaxed rules governing tech mergers thus creating an environment that welcomes technological industry consolidation.
Israel marks this agreement as its largest achievement to date since it will receive between 2.5 and 4 billion USD in taxation. Wiz aims to build its workforce of 900 members in the U.S., Europe and Asia together with Israel while pursuing additional acquisitions. The integration of Wiz into Google Cloud provides Alphabet with an opportunity to strengthen its cybersecurity capabilities. This will help it gain a competitive edge as more companies shift to digital-first operations.