The $32 billion acquisition of cybersecurity company Wiz by Alphabet, the parent company of Google, is expected to strengthen the tech giant’s internal cloud computing capabilities in the face of growing artificial intelligence.
The cash deal, which was revealed on Tuesday, would be Google’s most costly acquisition in its 25-year history if it is finalized.
By providing increased security for its services, the acquisition gives Google a fresh impetus to compete in the cloud computing market.
According to a blog post by Wiz CEO Assaf Rappaport, “Wiz and Google Cloud are both driven by the belief that cloud security needs to be easier, more accessible, more intelligent, and democratized so more organizations can adopt and use cloud and AI securely.”
Better cloud security and the flexibility to access various clouds are two significant and expanding trends in the AI era, and the business adds that Wiz will join Google Cloud as part of this effort.
In a statement, Google CEO Sundar Pichai claimed that Google Cloud and Wiz “will turbocharge improved cloud security and the ability to use multiple clouds.”
The agreement would “bolster our mission to improve security and prevent breaches by providing additional resources and deep AI expertise,” said Assaf Rappaport, co-founder and CEO.
Laptops 1000Wiz, a company founded in 2020 with headquarters in New York, creates security solutions to prevent hackers from accessing data kept in distant data centers.
Wiz has long been a target for Google. The estimated $23 billion takeover offer that Wiz turned down last July is surpassed by the purchase price announced Tuesday.
Antitrust authorities will closely examine the potential takeover. The Trump administration has demonstrated mistrust toward big tech, despite many people anticipating it will be more amenable to corporate transactions.
Additionally, Andrew Ferguson, the newly appointed chair of the Federal Trade Commission, has pledged to uphold a stringent merger and acquisition review procedure.
