On March 18, 2025, Google announced it has signed a definitive agreement to acquire Wiz, a New York-based cybersecurity firm, for $32 billion, marking the largest purchase ever of an Israeli tech company. This acquisition is not just significant for Google, but it also serves as a beacon of confidence for the Israeli high-tech industry amid troubling times due to geopolitical tensions.
Wiz, co-founded by Assaf Rappaport along with Yinon Costica, Ami Luttwak and Roy Reznik, has demonstrated remarkable growth since its inception in 2020 having achieved $100 million in annual recurring revenue just 18 months after launch. The company specializes in cloud security, providing multi-cloud security solutions to protect organizations against cyber threats. The acquisition will allow Wiz to significantly strengthen its position within Google Cloud, which sees cloud security as increasingly important due to the expansion of cloud infrastructures worldwide.
Assaf Rappaport, who previously left Microsoft believing it to be his "most horrible decision ever," views this acquisition as transformative for Wiz. He remarked, "Becoming part of Google Cloud is effectively strapping a rocket to our backs: it will accelerate our rate of innovation faster than what we could achieve as a standalone company," highlighting his optimism about the expanded capabilities this new partnership could offer.
The $32 billion deal outstrips Google's previous record acquisition of Motorola for $12.5 billion back in 2012. This move is part of Google's broader strategy to solidify its cloud operations, especially against stiff competition from other tech giants such as Amazon and Microsoft. Google stated, "Bringing all this to Wiz will help make their solutions even more efficient and scalable, benefiting customers and partners across all major clouds."
The deal is also viewed positively by experts as indicative of the continued strength and resilience of the Israeli tech sector, which has faced challenges over the past year due to the geopolitical climate. Yael Belgrai Cohen, head of the tech division at business analytics firm Dun & Bradstreet Israel, celebrated this milestone, asserting, "It is an extraordinary vote of confidence...despite the war, the Israeli industry is still relevant. This will most likely open the door to more [Israeli] companies and lead to more mergers and acquisitions."
Wiz initially turned down a $23 billion offer from Google last year, opting instead to pursue its own initial public offering amid concerns over antitrust issues. The market conditions have since shifted, making the $32 billion deal seem more favorable and timely. Rappaport previously expressed the difficulties of rejecting substantial offers, noting, "Saying no to such humbling offers is tough."
Despite the pressures from recent market conditions, including the hesitation of tech acquisitions, this deal bodes well for Wiz as it joins forces with one of the most influential tech companies globally. The acquisition is expected to close by 2026, following regulatory approvals.
Wiz's successful track record has made it appealing not just to Google, but it has also built relationships with many Fortune 100 companies, including major players such as Slack, BMW, and DocuSign. The company has been lauded for its innovative solutions which offer advanced security measures to protect against increasingly complex cyber threats.
With Google’s substantial resources and commitment to improving cloud security, both companies stand poised for success. Rappaport concluded, "Wiz has made the most of the market opportunities" and emphasized the importance of this partnership moving forward. Both companies aim to lead the charge for more intelligent, democratized cloud security solutions, ensuring businesses can navigate the cloud and artificial intelligence landscapes safely.
