Google is considering a major move to enhance its cybersecurity capabilities by potentially acquiring the cybersecurity start-up Wiz in what could be its most significant acquisition to date.
Advanced discussions are underway between Google and Wiz, with the acquisition likely valued around $23 billion, according to sources close to the matter cited by the Wall Street Journal. A Reuters source indicated that the deal would be largely funded in cash and could be finalized soon. Both Google and Wiz declined to comment to Reuters.
Wiz, an Israeli-founded company based in New York, specializes in cloud cybersecurity services. Since its founding in 2020, it has seen rapid growth, claiming that 40% of Fortune 100 companies are its clients. The company achieved 15th place on the 2023 Forbes Cloud 100 list.
Wiz states it safeguards 5 million cloud workloads and has backing from prominent investors like Blackstone, Sequoia, Salesforce Ventures, and Lightspeed. The start-up has offices across the United States and in Tel Aviv.
A potential acquisition could significantly strengthen Google’s position in the expanding cybersecurity market, crucial for combating the ever-present threat of cyberattacks on businesses of various sizes. Last year, Google bolstered its cloud security team by acquiring Israeli cybersecurity start-up Siemplify.
However, Google may face antitrust challenges from regulators, as both the U.S. and the EU are increasingly scrutinizing large acquisitions for competition risks. Google is currently embroiled in a significant antitrust investigation in the U.S., with the Department of Justice alleging it has maintained a monopoly in search engines and online advertising.
The judge in this case heard final arguments from both sides in May and is expected to take several months to deliver a decision, according to the Associated Press.