Google to acquire cloud security co Wiz for $32bn

Google parent Alphabet agreed to acquire cloud security firm Wiz for $32 billion in cash, reaching a deal less than a year after initial negotiations fell apart because the cloud-computing startup wanted to stay independent.

Wiz will join the Google Cloud business once the deal closes, the companies said in a statement on Tuesday. The takeover is subject to regulatory approvals and is likely to close next year, they said.

The deal, which would be Alphabet’s largest to date, comes after Wiz turned down a $23 billion bid from the internet search leader last year after several months of discussions. At the time, Wiz walked away after deciding it could ultimately be worth more by pursuing an initial public offering company. Concerns about regulatory challenges also influenced the decision.

Shares of Alphabet fell nearly 3% in New York on Tuesday.

The Wiz takeover is by far the largest M&A deal to be announced this year. Deal hungry companies and their advisers had initially predicted that US President Donald Trump’s policies would create better conditions for buying and selling, supercharging an M&A market that just got back on its feet after a lull. Instead, his tariff threats and geopolitical tensions have spooked markets and kept dealmakers in wait-and-see mode.

Google framed the Wiz ac quisition as a way to beef up its cloud security offerings with new ways to keep their systems secure in a new era of Artificial Intelligence.

“AI brings new risks, but also new opportunities,” Alphabet CEO Sundar Pichai said in a call with investors. “Organisations are looking for cybersecurity solutions that improve cloud security and span multiple clouds.”
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