American multinational technology company, Alphabet, announced on Tuesday that it will acquire fast-growing startup Wiz for approximately $32 billion, marking the largest acquisition in the company’s history.
The move is aimed at strengthening Google’s position in the cloud computing sector as it intensifies competition with Amazon.com and Microsoft.
The acquisition will see Wiz integrated into Google’s cloud unit, enhancing the company’s cybersecurity offerings that help businesses eliminate critical risks.
Its high price and unusually big breakup fee suggest Alphabet is comfortable that the buy will pass muster with the White House, even as the Trump administration has inserted itself into major deals and promised heavy scrutiny of Big Tech.
Shares of Alphabet dipped nearly 3%. The stock was down 13% this year before Tuesday on worries over its hefty AI spending against the rise of China’s lower-cost DeepSeek and a pullback in tech giants that led the market for the past two years.
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To secure the deal, Alphabet had to raise its offer significantly from last year’s $23 billion bid, which Wiz had turned down. The Israeli startup was last valued at $12 billion in a private funding round in May 2024, with annual recurring revenue surpassing $500 million by mid-year.
According to Reuters, sources revealed that discussions between the two companies continued despite the initial rejection, with Google Cloud CEO Thomas Kurian maintaining interest in the acquisition.
The talks accelerated over the past two months following Donald Trump’s return to the White House, according to sources who requested anonymity due to the sensitivity of the matter.
Trump has said he would continue heavy scrutiny on Big Tech, which began during his first term, though Wall Street expects a shift in antitrust policies under the president, whose pick to lead the Federal Trade Commission, Andrew Ferguson, may dial back on big M&A regulation.
Wiz currently works with major cloud platforms including Amazon Web Services, Microsoft Azure and Google Cloud, and its clients include Morgan Stanley, BMW and LVMH. Despite the acquisition, its products will remain accessible across all major cloud services.
Alphabet expects the transaction to be completed in 2026, subject to regulatory approval.
“There will likely be a microscope on the deal by investors, given Google’s lackluster historical track record with its capital allocation plan, specifically around M&A,” said Dave Wagner, portfolio manager at Aptus Capital Advisors.
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