Google’s Parent Company Alphabet Acquires Israeli Cybersecurity Giant WIZ for $32 Billion

In a groundbreaking deal, Alphabet, Google's parent company, has officially announced its acquisition of Israeli cybersecurity firm WIZ for $32 billion—$9 billion more than its initial offer from several months ago. This acquisition marks the largest ever made by an Israeli company, surpassing the previous record set by Mobileye’s $15 billion sale to Intel in 2017. It is also the largest deal in Alphabet's history, surpassing the $12.5 billion purchase of Motorola Mobility in 2011.

The acquisition is set to have a significant impact on Israel’s economy. If approved by U.S. regulatory authorities, it is expected to bring around NIS 13 billion in taxes to the Israeli treasury, potentially alleviating the need for budget cuts and helping to curb the country's deficit from increasing beyond 4.7%.

The all-cash deal is poised to reward WIZ’s four founders—Assaf Rapaport (CEO), Yinon Kostika (VP of Product), Ami Lutbek (VP of Technology), and Roy Reznik (VP of R&D)—with between $2 and $3 billion each. WIZ's 1,800 employees will also benefit from “sale and retention” grants, which are expected to be among the highest ever awarded to Israeli workers. Long-term employees may receive millions of dollars, while newer staff could receive grants worth hundreds of thousands.

WIZ Maintains Independence
WIZ, one of the wealthiest and most stable high-tech companies in Israel, will join Google’s Cloud division but will continue to operate independently, similar to LinkedIn’s relationship with Microsoft. Under the terms of the deal, WIZ’s Israeli R&D center will remain operational, and CEO Assaf Rapaport will continue in his role for at least three years. Importantly, WIZ will still be allowed to partner with companies that directly compete with Google, including others in the cloud sector.

Shifting Position: WIZ’s Change of Heart
The deal is a notable shift for WIZ, which rejected an earlier acquisition offer from Google in July of the previous year. At that time, CEO Rapaport believed the company’s value could exceed $100 billion. However, sources suggest several factors contributed to the company's decision to reconsider, including the $9 billion increase in Alphabet’s offer, the change in U.S. administration, and the opportunity to maintain WIZ’s independence. Additionally, WIZ’s rapid growth and ongoing success in negotiations may have made a public offering more challenging or uncertain.

WIZ’s Growing Influence in Cybersecurity
Founded in 2020 by Rapaport and his co-founders, WIZ quickly became a market leader in cybersecurity solutions for organizations protecting their cloud applications. The company has raised $1.8 billion since its inception and recently surpassed half a billion dollars in annual recurring revenue. Its flagship product, CSPM, helps identify security vulnerabilities in cloud environments, servers, and other digital infrastructure, making it a valuable asset for companies of all sizes, including governments and large enterprises.

WIZ’s technology will significantly bolster Alphabet's position in the cloud computing and cybersecurity sectors, where rivals Microsoft and Amazon are currently dominant players. Interestingly, Microsoft’s largest cybersecurity center is located in Herzliya, just minutes from WIZ’s headquarters.

Alphabet’s Strategic Move to Strengthen Cloud
The acquisition of WIZ is expected to further strengthen Alphabet’s cybersecurity offerings, especially as artificial intelligence and cloud services continue to reshape the tech landscape. Google Cloud’s CEO, Thomas Kurian, led the deal and has stated that integrating WIZ’s advanced cybersecurity products will help organizations prevent cyberattacks, especially in complex enterprise environments.

Kurian, who also oversaw the acquisition of Israeli cybersecurity startup Simplify, emphasized that WIZ’s solutions will help companies reduce the cost, disruption, and damage caused by cyber incidents.

Looking Ahead
Despite the acquisition, WIZ’s future looks bright. The company plans to continue hiring aggressively, with 100 open positions currently available. It is expected that the deal will not lead to layoffs but will instead help the company expand its operations globally, strengthening its role as a key player in the cybersecurity market.

As the deal moves toward approval, the tech world will be closely watching how WIZ's integration into Google Cloud unfolds and how it positions the company for continued success in the growing cybersecurity and cloud computing industries.