In a deal that has shaken up the global cybersecurity landscape, Google has announced the acquisition of Israeli cloud security firm Wiz for an eye-popping $32 billion. This historic transaction not only marks the largest acquisition of an Israeli tech company but also Google’s most expensive purchase ever, signaling its commitment to dominating the cybersecurity sector.
Founded just five years ago in 2020 by Assaf Rappaport, Ami Luttwak, Yinon Costica, and Roy Reznik, Wiz has skyrocketed to success at an unprecedented pace. The company developed a cloud security platform that allows enterprises to detect vulnerabilities in their cloud environments without the need for complex installations or lengthy integrations. Its rapid growth—reaching a $500 million annual revenue within a few years—has made it a key player in the cybersecurity industry, attracting major customers, including 40% of Fortune 100 companies.
For Google, this acquisition is about more than just securing a leading cybersecurity startup. It represents a calculated move to compete with cloud giants Microsoft and Amazon in the ongoing battle for cloud dominance. Wiz will remain an independent entity under Google Cloud, allowing it to continue serving customers across all major cloud providers, including those that directly compete with Google, such as Microsoft Azure and Amazon Web Services.
Industry insiders suggest that Wiz CEO Assaf Rappaport will be tapped to lead Google’s new cybersecurity division, further integrating Wiz’s expertise into Google’s broader security ambitions.
The deal has been hailed in Israel as a monumental milestone for the country’s high-tech sector. In a time of geopolitical and economic challenges, the acquisition is being seen as a strong vote of confidence in Israeli innovation.
“This is an extraordinary vote of confidence that exemplifies that despite the war, the Israeli industry is still relevant,” said Yael Belgrai Cohen, head of the tech division at Dun & Bradstreet Israel.
For Israel, this acquisition surpasses even Intel’s $15.3 billion purchase of Mobileye in 2017 and is expected to inject billions into the local economy. With Wiz’s 1,800 employees receiving a $1.5 billion retention bonus in addition to their company shares, the ripple effect of this windfall will likely be felt across Israel’s high-tech ecosystem, with many early employees expected to become future startup founders.
The story of Wiz’s founding team is one of remarkable success. Rappaport and his co-founders, all veterans of Israel’s elite military intelligence units, previously built and sold their cybersecurity startup Adallom to Microsoft for $320 million in 2015. Their deep expertise in cloud security positioned them perfectly to capitalize on the industry’s rapid shift to cloud computing.
By refusing Google’s initial $23 billion offer last year and instead opting for further growth, Wiz was able to drive its valuation even higher. Now, the final $32 billion deal underscores the immense value of Israeli cybersecurity in the global market.
While Google has assured that Wiz will retain operational independence, questions remain about how the acquisition will play out in the long term. Will Wiz maintain its agility and innovative edge under Google’s vast corporate structure? And how will competitors like Microsoft and Amazon react to one of their most trusted cybersecurity providers being acquired by a direct rival?
Regardless of the answers, one thing is certain: Wiz has cemented itself as one of the most successful Israeli startups of all time, and Google’s massive bet on its technology is a defining moment in the evolution of cloud security.
