Alphabet to acquire cybersecurity startup Wiz for $32 billion: FT

The Financial Times reported on Tuesday that Alphabet (GOOG, GOOGL) has agreed to buy cybersecurity startup Wiz for at least $32 billion, citing sources.

The transaction will be announced Tuesday morning, according to the article.

News of advanced negotiations between Google's parent company and the Israeli business broke overnight, with insiders claiming Alphabet had offered more than $30 billion, marking its largest prospective acquisition to date.

The transaction price is at least one-third greater than Alphabet's $23 billion offer last year.  Wiz canceled those talks in July 2024 due to concerns that it would not pass antitrust restrictions.  In an internal memo at the time, the security firm stated that it planned to focus on an IPO.

The acquisition will help Alphabet enter the cybersecurity sector and boost its thriving cloud infrastructure business, which produced more than $43 billion in revenue last year.

While US President Donald Trump's administration is widely expected to reverse key antitrust policies pursued by President Joe Biden, a deal that creates a cybersecurity behemoth is likely to face scrutiny.

Wall Street anticipated an increase in dealmaking following Trump's election, but the tariffs he has levied or threatened have roiled global markets, leaving businesses and investors hesitant about major decisions.

Wiz offers cloud-based cybersecurity solutions powered by artificial intelligence to assist businesses in identifying and mitigating significant risks on cloud platforms.

It works with a variety of cloud providers, including Microsoft (MSFT) and Amazon (AMZN), and its customers range from Morgan Stanley (MS) to DocuSign (DOCU).  Wiz, which has 900 employees in the United States, Europe, Asia, and Israel, had stated that it expected to hire 400 staff 

Internationally by 2024.