Alphabet Inc. is reportedly in negotiations to acquire cloud security firm Wiz Inc. for $33 billion, reviving talks that were initially paused last summer after lengthy discussions, according to sources familiar with the matter.
This potential deal, which could be announced as early as Tuesday, would mark Alphabet’s largest acquisition to date. It could also help Google’s cloud division close the gap with competitors Microsoft Corp. and Amazon.com Inc. While Google’s cloud business has become profitable after years of losses in recent quarters, its sales growth has recently slowed.
The terms of the deal are not yet final and could still change, or talks may end without reaching an agreement. A spokesperson for Wiz declined to comment, and Alphabet has not responded to requests for a statement.
For Wiz, the ongoing deal talks mark a shift after the company rejected Alphabet’s $23 billion offer last July, opting to stay independent and eventually pursue an initial public offering. Wiz and its investors were initially hesitant about the acquisition due to concerns over a lengthy regulatory approval process, with competition authorities in the US and Europe closely examining the tech sector for its market influence and economic power.
Wiz CEO Assaf Rappaport called last year’s Alphabet bid “humbling” and expressed his enthusiasm for growing Wiz into an independent cybersecurity powerhouse to compete with companies like CrowdStrike Holdings Inc. and Palo Alto Networks.
Google’s cloud business ranks third in the market, trailing behind Microsoft and Amazon, which could help it counter-regulatory concerns about market concentration in the cloud sector.
Founded by Israelis and headquartered in New York, Wiz counts Sequoia Capital, Index Ventures, Insight Partners, and Cyberstarts among its investors. Last year, the company was valued at $12 billion in a funding round.
