Google will acquire the start of Wiz cloud security for $ 32 billion

Google Tuesday signed a “Definitive Agreement” To acquire WIZ, a cloud security startup based in New York, for $ 32 billion in an cash agreement.

The agreement, Google’s greatest, will reinforce the company’s security technology in a world of advancement of artificial intelligence and cybersecurity threats. Wiz will become part of the company’s cloud business, and Google said it hopes that the agreement will close in 2026.

“Google Cloud is a cloud infrastructure leader, with a deep experience in artificial intelligence and a leading security innovation history in the industry.” Google said in a statement. “Taking all this to Wiz will help their solutions to be even better and more scalable, benefiting customers and partners in all important clouds.”

Last year, Wiz Awa walkedAnd of a possible acquisition of $ 23 billion for Google and told employees that he would Bag a IPO IDE instead. However, the OPI market has not yet been opened significantly since the agreements slowed up to a drip from 2022, and technological companies have expressed optimism that the Trump administration will open the door to great acquisitions after four difficult years under President Joe Biden.

A source familiar with the matter told CNBC that Wiz moved away from the agreement in July in part due to antitrust concerns and investors.

“Saying no to such humiliating offers is difficult,” Wiz co -founder wrote, Assaf Rappaport, to employees in a memorandum at the time CNBC obtained.

A month later, a federal judge governed that Google It has a monopoly in the search market, four years after the government presented its Reference casewho claimed that Google created rigid entry barriers and a feedback cycle that suffered its domain.

Alphabet CEO Pichai sundar He was among a group of high -profile technological executives who attended President Donald Trump’s Inauguration in January, and the company donated $ 1 millions for the opening fund.

Before the latest conversations with Google, Wiz had established an OPI and $ 1 billion in annual recurring income. In the July memorandum, Rappaport wrote that the company would pursue those milestones.

Wiz was founded in 2020 and has grown rapidly under rappaport, with the company hitting $ 100 million in annual recurring income After only 18 months. Company’s cloud security products include prevention, detection and active response, a portfolio that has attracted large companies and would have helped Google compete with Microsoftthat also sells security software.

“Becoming part of Google Cloud is effectively to tie a rocket behind us: it will accelerate our innovation rate faster than we could achieve as an independent company,” said Rappaport in a Blog Publication Tuesday.

While Google has a long history in M&A, he has moved away from the Megadeals. Before Wiz, its largest purchase was the acquisition of Hardware Motorola of $ 12.5 billion in 2012. Two years later, the company sold some assets to Lenovo for $ 2.9 billion. Google has also made cybersecurity acquisitions in the past, paying $ 5.4 billion for Mandiant in 2022.

Alphabet closed the year with $ 96 billion in cash and marketable values.

Wiz products will continue to run on competition platforms, including Amazon Web Services, Microsoft Azure and Oracle Cloud, companies said. The Wall Street Journal First reported on Monday that companies were in advanced discussions.

Alphabet’s shares fell 3% on Tuesday and now they have dropped 16% for the year.

– Jennifer Elias and Jordan Novet of CNBC contributed to this report.