Alphabet said Tuesday that Wiz would buy for about 32,000 million dollars in its largest agreement, since the Google matrix redoubles its commitment to cybersecurity to improve its advantage in the cloud computing race against Amazon.com and Microsoft.
The cash purchase occurs after Wiz rejected an offer of 23,000 million dollars from Alphabet last year due to concerns about antitrust approvals and its goal of focusing on an initial public offer.
Wiz’s acquisition will help Google reinforce his cloud business with cybersecurity solutions promoted by AI that companies use to eliminate critical risks, which will help him compete better in an industry that benefits from the rise of generative services such as Chatgpt.
“The cloud is more important than ever, and the attackers are not slowing down.
While a tough regulatory climate in 2024 had hampered such large-scale deals, Wall Street is optimistic that a shift in antitrust policies under U.S. President Donald Trump could reignite dealmaking momentum.
Wiz, one of the fastest growing software startups, was valued at $ 12,000 million in a financing round last May. He works with cloud suppliers such as Amazon Web Services, Microsoft Azure and Google Cloud and has Morgan Stanley, BMW and the LVMH luxury power among its customers.
Once the agreement is closed, Wiz will join the Google Cloud business, which generated more than 40 billion dollars in income in 2024 and has exceeded growth in the search business in recent years.
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Wiz products will continue to be available in all other cloud services
Wiz products will continue to be available in all other important cloud services. Alphabet hopes that the agreement will be closed in 2026, subject to regulatory approvals.
Da Davidson’s analyst Gil Luria said the highest price is based on another year of exponential growth for Wiz.
“For Google to compete with Microsoft Azure for business clients, you need to be able to offer a deeper set of services, including security software,” he said.
This is not the first time that Google reaches a great agreement for a cybersecurity company. In 2022, Mandiant bought for 5.4 billion dollars, surpassing Microsoft in a high -risk contest. The interest in the cybersecurity industry has been increasing since the global interruption of Crowdstrike last year.
Google had 23,470 million dollars in cash and cash equivalents as of December 31, which implies that it could have to seek financing for the agreement.
The company, which has reserved 75,000 million dollars in capital expenses by 2025, mainly for investments in AI, said Tuesday that its capital allocation plans remain unchanged.
Google’s shares fell almost 3% in the first operations in the midst of a broader weakness in the market. They had risen around 35% last year, but have lost 13% this year due to investors’ concerns about their strong expense in AI in the lower cost of China.
With Reuters information.
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