Google Seals the $32 Billion Deal With Wiz

On March 18th 2025, Alphabet, Google's parent firm, announced that it had reached an agreement to buy Wiz, a leading start-up cybersecurity firm, in an all-cash acquisition worth $32bn. This purchase would not only be Alphabet's largest acquisition to date but would go down as the largest deal this year so far, globally, and one of the largest technology deals of all time, should it pass regulatory scrutiny.

In July 2024, Alphabet made an offer of $23bn for Wiz, however, that deal fell through for a number of reasons including the bid price and regulatory concerns. Executives at both firms now feel that the price is right, and are betting on a gentler antitrust review under President Trump and his newly appointed FTC chair A. Ferguson.

Founded in 2020 by former Microsoft cloud security executives, Wiz has quickly grown into one of the world’s most valuable cybersecurity start-ups, achieving unicorn status in under a year. The company specialises in securing cloud infrastructure, helping clients identify and mitigate threats across platforms such as AWS, Azure, and Google Cloud. Known for its agentless architecture and user-friendly dashboards, Wiz has attracted major enterprise clients including Salesforce, BMW, and Morgan Stanley. Prior to the acquisition, Wiz had raised over $900m from investors such as Sequoia, Insight Partners, and Index Ventures, with its last valuation at $10bn.

Alphabet’s acquisition of Wiz is a strategic play to bolster Google Cloud’s security capabilities, an area where it lags behind Microsoft and Amazon. Despite strong technical credentials, Google Cloud has struggled with enterprise adoption due in part to perceptions around security and data privacy. Integrating Wiz directly into its offering will allow Google to offer more comprehensive cloud security solutions at scale, helping it win larger enterprise contracts. The deal also signals a broader shift in Google’s cloud strategy: from building in-house to aggressively acquiring best-in-class external tools to rapidly close capability gaps.

The decision to target Wiz over other cybersecurity firms speaks to both technological edge and commercial momentum. While players like Palo Alto Networks, CrowdStrike, and SentinelOne offer strong cloud security solutions, they are either deeply entrenched in endpoint or network security or are public companies with higher acquisition complexity. Wiz, in contrast, is cloud-native from inception, making it easier to integrate and align with Google Cloud’s architecture.

Wiz’s agentless scanning technology allows enterprises to deploy security at scale without the friction of installing software across every asset. It also boasts faster time-to-value than most competitors, a critical factor for CIOs under pressure to demonstrate ROI quickly. Additionally, Wiz’s explosive revenue growth, with expectations to reach $1bn ARR this year, signals strong product-market fit, making it a less risky acquisition from a commercial standpoint.

Despite the optimism from both firms, the deal is expected to attract antitrust scrutiny both in the U.S. and EU. While cybersecurity remains a relatively unconsolidated industry, regulators may question Alphabet’s growing footprint in adjacent tech verticals. The $3.2bn breakup fee underlines both the strategic importance of this deal and the underlying regulatory risk. Critics argue that allowing one of the world’s most dominant tech firms to further entrench itself in the cloud ecosystem could stifle innovation. However, under the Trump administration, the regulatory climate appears more permissive, particularly when framed as a move to strengthen U.S. cybersecurity leadership globally.

A number of financial advisors were appointed to get this deal signed. Bank of America lead advisory on the sell-side of this deal (Wiz), while Barclays, Goldman Sachs, and Morgan Stanley advised Alphabet through this transaction. To give an even stronger incentive for all parties to see through this purchase, the breakup-fee has been set just over a sizeable $3.2bn.

This is a bold and expensive bet by Alphabet. At $32bn, the deal reflects not just Wiz’s current capabilities but also its strategic potential. Google is clearly signalling that cloud security is now mission-critical to its future. While Alphabet has a mixed track record with acquisitions (Nest and Motorola) the Wiz deal stands out due to its immediate enterprise application and alignment with existing cloud growth strategies. If successfully integrated and approved, this acquisition could serve as a watershed moment in Google’s battle to dethrone AWS and Microsoft Azure. But the real test will be execution, how seamlessly Alphabet embeds Wiz into its cloud suite and whether customers follow.

Written By: Alexander Philp

Sources: MergerLinks, Press Releases