Thought Leadership
The technology giant Google is apparently on the verge of its largest company acquisition to date. According to a report in the Wall Street Journal, the group is in advanced negotiations to acquire cybersecurity start-up Wiz for a sum of 23 billion dollars.
Wiz was only founded in 2020 and has undergone impressive development under the leadership of CEO Assaf Rappaport. The company, which specializes in cloud security, reached a valuation of 12 billion dollars in May of this year and was even considering an IPO. Investors include well-known companies such as Cyberstarts, Index Ventures, Insight Partners and Sequoia Capital.
Two years ago, the Group acquired Mandiant, a cybersecurity company, for 5.4 billion dollars. However, the planned acquisition of Wiz would come at a time when Google is under increased scrutiny from antitrust authorities. The US Department of Justice has already filed two antitrust lawsuits against the company, with the most recent one from 2023 also targeting the Group’s takeover practices.
The potential deal shows that Google continues to focus on growth through acquisitions despite legal challenges. Wiz’s cloud security solutions, which provide organizations with comprehensive visibility into their cloud presence, could be of strategic importance to Google, especially in the face of increasing cyber threats from state and criminal actors.
It remains to be seen if and when the deal will materialize. A representative of Wiz has so far declined to comment. If the takeover goes ahead, it would not only be Google’s largest acquisition, but also a clear signal of the growing importance of cyber security in the technology industry.
