Thematic Spotlight: Google Acquires Cybersecurity “Wiz”

Google operator, Alphabet Inc. has entered advanced talks to acquire Wiz, a privately held cybersecurity firm, for US$23 billion.1 The deal, if confirmed, would mark Alphabet’s largest acquisition ever and highlights the growing focus on cybersecurity as part of big tech’s enterprise strategies.2 Wiz is Alphabet’s third cybersecurity related acquisition in the past three years. The firm acquired cyber-intelligence firm Mandiant for US$5.4 billion in 2022, as well as Security Automation start-up Siemplify for US$500 million in the same year.3

Founded in 2020, Wiz is an emerging player in the cloud platform protection industry and is known for its cloud-based security platform which seeks to identify and eliminate risks arising from network exposure, malware and user misconfiguration etc.4 Direct competitors to Wiz include cybersecurity giants Palo Alto Networks and CrowdStrike which also provide similar services in cloud security. To date, Wiz has raised roughly US$2 billion and was last valued at US$12 billion, making Alphabet’s potential bid a 200% mark up on its known valuation.5

Alphabet’s acquisition of Wiz marks a landmark deal in the cybersecurity industry and underscores the crucial role that cybersecurity now plays in the modern digital landscape. Cyber threats have become increasingly sophisticated, and the demand for robust security solutions is higher than ever. Looking forward, as more investors recognize the increasing demand for such solutions, fellow cybersecurity firms may observe a positive revaluation, reflecting the broader trend towards enhanced cybersecurity measures.6

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