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Alphabet sets an Israeli start-up wiz

Alphabet sets an Israeli start-up wiz

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Alphabet will quickly grow growing startup wiz for around $ 32 billion in its greatest offer of all time, the Google Parent announced on Tuesday because it doubles cybersecurity to sharpen its lead in the cloud computing race against Amazon.com and Microsoft.

The Blockbuster -Deal will make WIZ part of Google's cloud unit and strengthen the company's efforts in cyber security solutions with which companies remove critical risks.

The high price and the unusually large separation fee indicate that Alphabet is convenient that the purchase with the White House is passed, even if the Trump administration has been integrated into larger offers and promised a strong examination of Big Tech.

Alphabet's shares fell by almost 3%. The stock had dropped by 13% this year before Tuesday because it has given itself the strong AI editions against the increase in the deeper Techsek China and a withdrawal of tech giant China in the past two years.

In order to arrest the acquisition, Alphabet had to agree to a higher price than that of 23 billion US dollars for Wiz last year, which the Israeli startup had rejected.

People go alongside a Google logo during a trade fair in Hanover Messe, in Hanover, April 22, 2024. (Credit: Anneget Hilse/Reuters)

Last May, it was worth $ 12 billion with a private financing round with an annual recurring turnover of more than $ 500 million in mid-2024.

Sources said that the two parties were also in contact after WIZ was rejected last year when the CEO of Google Cloud, Thomas Kurian, remained consistent in his persecution.

The talks have returned to the White House in the last two months after Donald Trump's return, said sources and asked the anonymity to discuss private affairs.

Trump said that he would continue the big exam at Big Tech, which began during his first term, even though Wall Street expects a shift in antitrust policy under the president, whose election could cover the Federal Trade Commission, Andrew Ferguson, on Big M&A regulation.

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WIZ works with cloud providers such as Amazon Web Services, Microsofts Azure and Google Cloud and includes Morgan Stanley, BMW and LVMH.

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WIZ products will continue to be available in other important cloud services. Alphabet expects the deal to be completed in 2026, subject to regulating permits.

“There will probably be a microscope for the deal of investors, in view of Google's lackluster historical record of success with its capital allocation plan, especially in connection with M&A,” said Dave Wagner, portfolio manager at Aptus Capital Advisors.

Google's cloud unit generated sales of more than 40 billion US dollars in 2024 and has exceeded the growth of the company's search transaction in recent years.

Since Davidson Analyst Gil Luria said that the higher price is based on another year of exponential growth for Wiz.

“So that Google can compete with Microsoft Azure about corporate customers, it must be able to offer a lower series of services, including security software,” he said.

Wiz has agreed to a termination fee of more than 3.2 billion US dollars, said a source of Reuters, one of the highest fees in M&A history.

Interest in the Cybersecurity industry has increased in the entire industries since the global crowdstrike failure and prompted companies to provide more to secure their online domains.

The most recent deal is another sign that the Israel's cyber security industry strikes well above its weight.

Silicon Valley Giants, including Siemplify, which was bought by Alphabet in 2022, and OWN, which Salesforce 2024 acquired in 2024, were acquired by Salesforce 2024.

Already in 2015, the founders of WIZ Cloud security company Adallom sold to Microsoft.

Regulatory concerns

Google has emphasized that WIZ would continue to work with competing cloud platforms – potentially to take regulatory concerns.

Interoperability was a main topic in recent cartel cases, including the existing case of the US Justice Ministry via Google. The FTC is pursuing a cartel examination in Microsoft's cloud computing business.

“In general, Google is not a leader in the cloud business, and WIZ will continue to be available in all other cloud services,” said Elise Phillips, Policy Counsel at Public Knowledge, a group of lawyers for public interests.

“Any kind of exclusivity agreement between the two across the board would give me cause for concern.”

The DOJ urges measures, including a sale of his chrome browser, to deal with what a judge said was an illegal search monopoly.

“This (deal) will be a big test for lawyers for economic lawyers,” said Wagner from Aptus Capital.

Google had 23.47 billion US dollars in cash and cash equivalents on December 31, which indicates that it may have to obtain financing for the business.



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