Google is in advanced talks with Wiz for a 23B CAD cybersecurity deal
According to the Wall Street Journal, Alphabet, Google's parent company, is in advanced talks to acquire the cybersecurity startup Wiz. The transaction is valued at approximately 23 billion CAD. If the deal is finalized, it will be the largest acquisition in the tech giant’s history.
The WSJ reports that negotiations are advanced, and the agreement could be finalized soon, barring any sudden complications. All indications suggest that Google will acquire one of the most promising companies in recent years.
Wiz, founded in 2020, has quickly gained a reputation in the cybersecurity industry. The company offers security software designed for the cloud. It achieved impressive financial results rapidly, with its revenue reaching around 350 million CAD in 2023.
Strategic importance of the acquisition for Google
The acquisition of Wiz could significantly strengthen Google's position in the cloud computing market segment. The tech giant ranks third in this segment—behind Amazon and Microsoft. The WSJ emphasizes that although Google’s cloud services proliferated—with revenues from this segment increasing by 26% last year—the company still lags behind its competitors. Acquiring Wiz could help close that gap.
It is worth noting that Wiz is currently collaborating with many leading companies, including Amazon and Microsoft, which could add additional value for Google.
Google’s major acquisitions
In 2021, Google completed the purchase of the specialist hardware and software company Fitbit for CAD 2.1 billion. In 2022, it acquired the cybersecurity specialist Mandiant for nearly CAD 5.4 billion. However, acquiring Wiz for CAD 23 billion would be the largest transaction in Google's history, surpassing the purchase of Motorola Mobility for CAD 12.5 billion in 2012.
The WSJ notes that this potential acquisition aligns with a broader consolidation trend in the cybersecurity sector. An example is Cisco's recent acquisition of Splunk for CAD 28 billion.
