Alphabet, Google's parent company, is reportedly in advanced negotiations to acquire Israeli cybersecurity startup Wiz for approximately $23 billion. This potential deal, which could be finalized soon, would mark the largest acquisition in Alphabet's history. The valuation of Wiz has surged since its inception in 2020 by CEO Assaf Rappaport and his colleagues, who met during their mandatory military service in the Israeli army's elite Unit 8200.
Wiz, headquartered in New York with offices in the United States and Israel, provides cutting-edge cybersecurity software for cloud computing. The startup has successfully raised $1 billion earlier this year at a valuation of $12 billion, making it one of the few non-AI startups to achieve such a high valuation in 2024. Wiz's platform is utilized by major global companies like Salesforce and BMW.
Google's interest in Wiz stems from the intense competition in the cloud information security market, where the company lags behind leaders Amazon and Microsoft. By acquiring Wiz, Google aims to bolster its cloud computing capabilities and enhance its reputation as a secure cloud platform. The acquisition would also help Google address the growing complexity and security challenges associated with cloud services.
The acquisition is driven by Google Cloud CEO Thomas Kurian and is seen as a strategic move to close the gap with competitors. Wiz's comprehensive cloud security solution scans cloud environments through APIs, analyzing resources, network configurations, access permissions, and potential vulnerabilities. This innovative technology provides a clear and accurate picture of significant risks, allowing development and security teams to prioritize risk management effectively.
Assaf Rappaport, a serial entrepreneur with a successful track record, co-founded Wiz after selling his previous company, Adallom, to Microsoft for $320 million in 2015. Rappaport and his partners, who have become billionaires, have continued to build on their success with Wiz. Despite facing challenges such as a patent infringement lawsuit against competitor Orca Security, Wiz's support for all types of clouds gives it a significant advantage in the market.
If the acquisition goes through, it will not only be Google's biggest acquisition ever but also the largest exit in the history of Israeli high-tech. The deal is subject to regulatory scrutiny, especially given the Biden administration's focus on antitrust actions. Nonetheless, the potential acquisition of Wiz highlights the growing importance of cybersecurity in the cloud computing sector and Google's commitment to strengthening its position in this critical area.
