Google Seals $ 32 billion to start cyber -wiz

Google has agreed to buy Wiz, a rapidly growing cyberspace, for $ 32 billion to the company’s biggest boost to boost cloud-computing businesses and expand beyond the search engine and consumer internet services that made it a home name.

The All-Cash deal, announced on Tuesday, would be the largest, would easily surpass the $ 12.5 billion Motorola Mobility market.

With the deal, Google will get a five -year -old company in which most consumers are not familiar with, but that a growing number of businesses is based on protecting their cloud applications. The Silicon Valley giant worked for months last year to create a wiz deal, which recently valued at $ 12 billion. In July, Wiz rejected Google’s $ 23 billion acquisition, saying he wanted to follow an initial public offer that never came.

The Splashy market, which companies expect to close in 2026, would introduce a new impulse to Google Cloud, the part that sells computer services to other businesses. It would also be the most aggressive attempt by the Technological Giant to keep up with Microsoft’s opponent in cyberspace.

At a conference conference on the deal on Tuesday, Sundar Pichai, Google’s chief executive, said the company was buying Wiz because “it is an innovative, top cloud security platform”.

He added: “The rhythm and impact of violations accelerate. AI brings new dangers and new opportunities” that Wiz could help.

But first, the alphabet, the parent company of Google, should clean the regulatory barriers.

The deal will test the company’s ability to carry out significant acquisitions during prolonged antitrust battles with the US government. The Ministry of Justice has filed a lawsuit against Google in two separate cases of monopolies, targeting the ubiquitous search engine and another seeking to dismantle the digital advertising technology business. A federal judge decided last year that the company had illegally maintained a monopoly on the electronic search and will decide on corrective measures to restore competition until August.

Under President Trump, regulatory authorities continued to take a position against corporate integration. In January, the Ministry of Justice sued to exclude the acquisition of Hewlett Packard Enterprise by an opponent, Juniper Networks, arguing that the deal would eliminate competition and raise prices.

For Google, which avoided large acquisitions in recent years, Wiz has proven to be worth the regulatory risk. Mr Pichai emphasized the ability of the start to drive growth, telling the call that half Fortune 100 companies use Wiz technology.

Evelyn Mitchell-Wolf, an Emarketer analyst, a business-based business, told an email that it was uncertain whether Google would receive regulatory approval for the deal.

“Given its price – and the fact that Google has already been found guilty of anti -scale search market behavior – the acquisition will attract excessive control to pass completely smoothly,” he wrote.

The market fits in the year of the year of Alphabet for trying to differentiate the search engine, the YouTube video service and other advertising companies that bring three -quarters of its revenue. Alphabet has set up business companies such as Waymo and Really, which focuses on health care, but have not yet fully rendered.

The company has raised resources to Google Cloud. Like Amazon Web Services and Microsoft Azure competitors, the company offers services to help companies store and analyze data, as well as perform applications.

The acquisition of Wiz is aligned with a plan to make Google Cloud a biggest cyber security player. Under Thomas Kurian, the Managing Director of the Unit, Google Cloud bought two cyberspace companies in 2022 – Mandiant for $ 5.4 billion and Siemplify for $ 500 million. The strategy could help Google cover Microsoft, which said it produces more than $ 20 billion in annual security revenue, making the largest cyberspace software provider.

Google and Wiz repeated talks on an agreement in August, after Wiz left an offer last month, two people with knowledge of the negotiations reported. Wiz had begun another round of raising capital when he agreed with Google’s offer, two people near the company reported.

Google has already proposed that the deal will not undermine competition in the cloud market. Mr Kurian said about the conference that if Wiz joined his department, he would continue to work with other cloud providers such as Microsoft, Amazon and Oracle. He added that with Wiz, Google will be able to give customers greater visibility in their own systems and defend new threats that emerge with artificial intelligence.

If completed, the deal can help to rejuvenate Google Cloud’s revenue expansion. As the business has increased, its pace has usually slowed down, although revenue in the fourth quarter increased by 30 % from the previous year to $ 12 billion.

Wiz has increased quickly. Last year, he said he had $ 350 million in repetitive revenue, from $ 100 million two years earlier. The company, based in New York, said it plans to reach $ 1 billion in repetitive revenue this year.

The acquisition will “accelerate our innovation rate faster than we could achieve as a stand -alone company, allowing us to protect more organizations,” said Assaf Rappaport, CEO of Wiz.

Wiz investors include Andreessen Horowitz, Index Ventures, Thrive Capital, Greenoaks and Advent International.

Lauren Hirsch He contributed a report from New York.