Google is in advanced talks to acquire cybersecurity firm wiz for 21,4bn euros

The WSJ reports that negotiations are advanced, and the agreement could be finalised soon, barring any sudden complications. All indications are that Google will acquire one of the most promising companies of recent years.

Wiz, founded in 2020, quickly gained a reputation in the cybersecurity industry. The company offers security software designed for the cloud. In a short time, it achieved impressive financial results. The company’s revenue reached 327 million euros in 2023.

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 emphasises that although Google’s cloud services proliferated—revenues from this segment increased 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.

In 2021, Google completed the purchase of Fitbit, a specialist hardware and software company for athletes, for 1.9 billion euros. In 2022, it acquired the cybersecurity specialist Mandiant for nearly 5 billion euros. However, acquiring Wiz for 21,4 billion euros would be the largest transaction in Google's history, surpassing the purchase of Motorola Mobility for 11,6 billion euros 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 26 billion euros.