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The transaction, which is awaiting regulatory approval, represents a solid bet on cloud security and artificial intelligence.
Google announced the purchase of startup Israeli cybersecurity Wiz by US $ 32 billion, a milestone that stands out as the largest acquisition in the history of A, Google's parent company. The deal, which is subject to regulatory approval, represents a major bet by the technology giant on cloud security, especially in a scenario of accelerated growth in artificial intelligence.
This acquisition not only reflects Google's determination to strengthen its position in the cybersecurity market, but also signals a growing trend in the technology industry of consolidating companies specialized in digital security.
What happened to the acquisition
The announcement was made on Tuesday, March 18, and the transaction value is around $ 182,6 billion.
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This strategic move by Google occurs after a previous proposal to buy Wiz, in 2023By US $ 23 billion, which did not move forward due to regulatory concerns related to security and cybersecurity.
Google recognizes that cloud security is a growing concern for businesses around the world, especially as more organizations move their data and operations to cloud computing platforms.
Alphabet believes that if the acquisition is approved, it will be the largest of the year and a significant investment for the Google Cloud, helping to drive innovation and security in an increasingly competitive market.
What does Wiz do?
A Wiz is a cybersecurity platform that can be integrated with any cloud computing service provider, enabling the prevention of security incidents.
The services offered by Wiz will continue to be available to all major cloud computing providers, including Amazon Web Services (AWS), Microsoft Azure e Oracle cloud.
This flexibility is an important differentiator for Wiz, as many companies use multiple cloud providers and need solutions that work across different platforms.
Google's cloud computing revenue grew last quarter 30%, although below market expectations, which reinforces the need to strengthen its security offerings.
Wiz, founded in 2020, quickly scaled his business, reaching $500M monthly in annualized recurring revenue in 2023.
The company already provides cloud security services to around 50% Taj 100 largest companies the two United States, standing out as a reliable and effective solution in an increasingly threatened digital environment.
The impact of the acquisition on the cybersecurity industry
The acquisition of Wiz not only solidifies Google's position in the cybersecurity industry, but is also seen as a sign of recognition of Google's technological prowess. Israel.
The country is known as a hotbed of innovation in technology and cybersecurity, with several startups that stand out in advanced solutions.
With the purchase, Google surpasses its previous largest acquisition, the purchase of Motorola Mobility em 2012 by US $ 12,5 billion.
Wiz co-founder, Assaf Rappaport, who has held positions in Microsoft, should play a relevant role in Google's cloud structure.
This change can bring new strategic directions and innovations to the Google Cloud, especially at a time when cybersecurity is in high demand.
Additionally, the Wiz acquisition could impact the cybersecurity market as a whole.
Other technology companies are expected to follow Google's lead by seeking to acquire startups that offer innovative and efficient security solutions.
This trend could lead to increased competition and innovation in the sector, driving the development of new technologies and approaches to addressing cyber threats.
Wiz Founders and their future plans
The four founders of Wiz — Assaf Rappaport, Ami Luttwak, Yinon Costica e Roy Reznik — are between the ages of 36 e 42 years and met during their military service in Israel, where they were part of the Unit 8200, responsible for cybersecurity for the Israel Defense Forces.
This military experience not only prepared them to face security challenges, but also connected them to a valuable network of technology talent and expertise.
Each of the founders has 10% of the company, which means that with the sale they should pocket US $ 3,2 billion each, although taxes may reduce this amount.
With this new wealth, the founders can focus on future innovations, whether within Google or in new ventures.
CEO Rappaport has previously stated that cybersecurity is constantly evolving and that Wiz needs to adapt quickly to meet new challenges. This suggests that even after the acquisition, the company will continue to pursue innovations in the security space.
The current scenario and future expectations
The acquisition of Wiz is celebrated amid a climate of uncertainty due to tensions in Israel and turbulence in the financial markets.
The deal represents a return to the M&A scene in Big Tech, which had cooled in recent months due to a tougher antitrust approach by regulators.
The expectation is that the acquisition will reactivate the market negociações, with some analysts believing it could signal a new chapter for the tech industry.
Market analysts note that Google's move could spur a surge in mergers and acquisitions, especially among technology companies looking to consolidate to face growing competition.
Focusing on cybersecurity is a priority not just for Google, but for all companies operating in digital environments, where data protection and privacy are becoming increasingly crucial.
Furthermore, Wiz is not the first company the founders have created and successfully sold.
Em 2015, they sold the Adallom to Microsoft by $320M monthly.
With Wiz, they initially intended to go public, but Alphabet's new proposal, which represents an increase of 39% compared to the previous offer, he changed his plans.
The Future of Cybersecurity at Google Cloud
Wiz's integration into Google Cloud not only strengthens the security service offering, but also allows Google to expand its presence in a rapidly evolving market.
As more companies adopt cloud solutions, security becomes a central concern.
Wiz brings not only a robust platform, but also a team of experts who can help shape Google's security strategy.
With the investment in Wiz, Google is well positioned to meet the growing demand for cloud security solutions.
The company already has a diverse portfolio of cloud computing services, and the addition of Wiz could provide a more comprehensive approach to security by integrating threat detection and incident prevention services.
Final considerations
The acquisition of Wiz by the Google marks a significant moment for the startup Israeli and the cybersecurity industry as a whole.
With the growing focus on cloud security and artificial intelligence, the acquisition not only strengthens Google's position in the market, but also reflects the importance of innovation and collaboration in an ever-evolving digital world.
Expectations are high that with this acquisition, Google will further expand its capabilities and offer more robust cybersecurity solutions to its customers.
Wiz’s success could inspire other startups to innovate in critical areas and seek partnerships with large technology companies, creating a dynamic ecosystem that drives the advancement of cybersecurity across the industry.
The future looks bright, not just for Google and Wiz, but for the entire technology industry, which must continue to evolve and adapt to the new realities and challenges of the digital world.
SOURCE: NEOFEED
