Google is acquiring cybersecurity firm Wiz for $32 billion in an all-cash transaction. This is Google's largest acquisition in its 26-year history. The acquisition is meant to enhance Google's cloud computing security as artificial intelligence (AI) continues to expand exponentially.

Wiz will be part of Google Cloud, which will enhance its cloud security. The firms made the announcement on Tuesday, March 18.

“Wiz and Google Cloud are both fueled by the belief that cloud security needs to be easier, more accessible, more intelligent and democratized, so more organizations can adopt and use cloud and AI securely," said Wiz CEO Assaf Rappaport in a blog post.

Google CEO Sundar Pichai also expressed his enthusiasm for the deal. According to him, “Google Cloud and Wiz will turbocharge improved cloud security and the ability to use multiple clouds."

About Wiz

Wiz is headquartered in New York and established in 2020. It develops security technologies that safeguard information kept in remote data centers. Google has been interested in Wiz for some time now.

Wiz last year turned down a $23 billion buyout offer and instead decided to go public. On Tuesday, however, Rappaport stated that an affiliation with Google will enable Wiz to “innovate even faster.”

Impact on the industry

Industry insiders see this transaction as making Google more capable of competing with other technology powerhouses such as Microsoft and Amazon. Wedbush analysts referred to Google's move as "a shot across the bow" against its competitors and noted the acquisition would "clearly bolster" Google's cloud businesses.

The merger will be scrutinized by antitrust regulators to make sure it does not promote unfair competition. The new Federal Trade Commission (FTC) Chairman Andrew Ferguson has vowed to thoroughly examine large tech mergers.

Despite potential issues, analysts feel the tech sector is "ripe for consolidation," which may result in major growth amid the AI boom.

Wiz's solutions will remain compatible with leading cloud infrastructures such as Amazon Web Services (AWS), Microsoft Azure, and Oracle Cloud. Subject to regulatory approval, Google and Wiz anticipate the transaction to close in 2026.

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