A Historic Milestone for Israeli High-Tech
In a groundbreaking move, Google’s parent company, Alphabet, has agreed to acquire Israeli-founded cybersecurity unicorn Wiz in an all-cash deal worth $32 billion. This acquisition marks the largest exit for an Israeli tech company, surpassing Intel’s $15.3 billion purchase of Mobileye in 2017. It is also Google’s biggest acquisition to date, more than doubling its $12.5 billion purchase of Motorola Mobility in 2012.
The deal is a significant vote of confidence in Israel’s tech ecosystem, especially during a time of geopolitical instability. Yael Belgrai Cohen, head of the tech division at Dun & Bradstreet Israel, noted that this acquisition reaffirms Israel’s technological relevance and resilience, even amidst the ongoing war.
Wiz: The Cybersecurity Powerhouse
Founded in 2020, Wiz has rapidly become a dominant force in cloud security. The company provides AI-powered cybersecurity solutions that help businesses secure applications and prevent cyber threats across multi-cloud environments like AWS, Microsoft Azure, and Oracle Cloud.
With over 1,800 employees, Wiz has built a strong global customer base, including 40% of Fortune 100 companies such as Slack, Mars, BMW, DocuSign, Plaid, and Agoda.
The company’s four co-founders—Assaf Rappaport (CEO), Yinon Costica (VP Product), Ami Luttwak (CTO), and Roy Reznik (VP R&D)—previously built and sold their cloud security startup Adallom to Microsoft for $320 million in 2015. They later led Microsoft Azure’s Cloud Security Group before launching Wiz.
Why Google is Betting Big on Wiz
Google Cloud CEO Thomas Kurian emphasized that cloud security is a top priority for businesses worldwide, and Wiz’s advanced platform will significantly enhance Google’s cybersecurity capabilities.
“Enabling more companies to prevent cyber attacks, including in complex business environments, will help organizations minimize the cost, disruption, and hassle caused by cybersecurity incidents,” said Kurian.
Google’s acquisition of Wiz positions it to better compete against Amazon Web Services (AWS) and Microsoft Azure in the cloud computing race. By integrating Wiz’s cutting-edge security technology, Google aims to offer stronger security solutions and attract enterprises looking for multi-cloud security options.
Strategic Benefits for Google
- Enhanced cloud security offerings to compete with AWS and Microsoft Azure
- Access to Wiz’s AI-powered cybersecurity platform to secure cloud-based applications
- Stronger positioning in the global cybersecurity market, rivaling Palo Alto Networks and CrowdStrike
Wiz’s Future Under Google
Pending regulatory approvals, Wiz will become part of Google Cloud but will continue operating independently. CEO Assaf Rappaport expressed excitement about the acquisition, saying:
“Becoming part of Google Cloud is like strapping a rocket to our backs—it will accelerate our innovation faster than we could achieve as a standalone company.”
From a $23B Offer to a $32B Deal
Interestingly, Wiz had previously walked away from a $23 billion acquisition offer from Alphabet in 2024 due to regulatory concerns and a desire to remain independent. Instead, the company focused on growing its annual recurring revenue (ARR) to $1 billion and even considered an IPO.
However, Google’s revised offer of $32 billion reflects the increasing value of cybersecurity in today’s digital landscape and highlights the global impact of Israeli tech innovation.
Conclusion: A Game-Changer for the Industry
The Google-Wiz acquisition is a historic moment for Israeli high-tech and the global cybersecurity industry. As cloud adoption accelerates and cyber threats become more sophisticated, this deal solidifies Google’s commitment to providing top-tier cloud security solutions.
For Israel, it represents not just an economic victory but a testament to the country’s unmatched expertise in cybersecurity—an industry it continues to lead on the world stage.
