Google’s Record-Breaking Acquisition of Wiz: From Pandemic Uncertainty to a $32 Billion Deal
In an era when a global pandemic brought much of the world to a standstill, a newly founded cybersecurity startup found the perfect moment to launch—and just five years later, it has struck a landmark deal with Google. Wiz, an Israeli cloud-security company established in March 2020, is set to be acquired by Google for a staggering $32 billion in an all-cash transaction, marking the tech giant’s largest acquisition to date.
A Risky Start at the Worst Possible Time
For the four Israeli co-founders of Wiz—Assaf Rappaport, Ami Luttwak, Roy Reznik, and Yinon Costica—March 2020 seemed like the worst possible moment to begin a new venture. Countries were shutting down, markets were in disarray, and the founders themselves questioned whether it was wise to press forward. Yet their collective experience and decades-long friendship from their days in Unit 8200—the elite intelligence division of the Israeli army—gave them a critical edge.
The team’s track record was already notable. Their previous startup, another cloud-security firm, was sold to Microsoft in 2015 for $320 million. Rappaport went on to lead Microsoft’s research and development in Israel before leaving in early 2020 to co-found Wiz. Even with deep industry connections and a history of success, no one could have foreseen how the pandemic would both complicate and accelerate their new endeavor.
Why the Cloud and Why Now?
Wiz set out to help organizations fortify their cloud systems, identifying vulnerabilities and thwarting potential hacks. What might have been a niche product suddenly became indispensable as companies worldwide rapidly shifted to remote work during the pandemic. Data centers, once hosted on physical servers, quickly migrated to the cloud, creating urgent security needs that Wiz was poised to address.
The founders’ timing, although nerve-wracking, turned out to be impeccable. Chief information-security officers (CISOs) who once felt confident in their existing cloud defenses found themselves scrambling to protect an explosion of remote endpoints. Wiz’s software, which could be installed during a sales call and yield real-time insights by the time the call ended, offered an attractive blend of simplicity and comprehensive coverage.
The Secret to Wiz’s Meteoric Rise
In just five years, Wiz skyrocketed from an idea around a Tel Aviv table to a global leader in cloud security, propelled by a few key factors:
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A Focus on User Experience:
Unlike many enterprise solutions, Wiz’s interface is both intuitive and surprisingly enjoyable. “Most people treat enterprise software like they’re trying to punish you,” joked Neil Mehta, founder and managing partner of Greenoaks Capital, an investor in Wiz. “This is actually a delightful product—the first time I’ve ever said that about cybersecurity.” -
Stealth Mode with a Clear Vision:
Even before unveiling the company publicly, Wiz’s founders knew precisely the product they wanted to build. The pandemic’s lockdowns allowed them to hire top Israeli engineers, rapidly iterate, and perfect their software at a pace few startups could match. -
Remote Work Opportunities:
Ironically, the same global crisis that made the founders second-guess their timing also opened doors. Meetings with prospective clients and investors that would have taken weeks to schedule happened in days or even hours. Stuck at home, companies were eager to discuss how to shore up their security posture—and Wiz was ready to offer a solution. -
Unit 8200 Credentials:
The Israeli military’s elite intelligence unit is known for producing some of the world’s top cybersecurity entrepreneurs. The founders’ longstanding personal and professional relationships gave them an immediate level of trust and synergy.
Securing a $32 Billion Deal
Wiz’s meteoric rise attracted major attention from venture capitalists and tech giants alike. The company raised $1.9 billion from high-profile investors over the years. Talks with Google reportedly began less than a year ago, though an initial attempt to reach an agreement fell through. In the intervening months, Wiz continued to grow at such a rapid pace that the final purchase price soared by an additional $9 billion.
“We believed we were building something essential for the modern era of cloud computing,” Rappaport said in a statement following the announcement. “The pandemic merely sped up the timeline for what we saw coming all along.”
Looking Ahead
Google’s all-cash acquisition of Wiz stands as a testament to how dramatically the cybersecurity landscape has evolved—especially for companies operating in the cloud. The deal also highlights the growing influence of Israeli tech entrepreneurs, whose innovations are increasingly central to the future of enterprise security.
For Google, adding Wiz’s tools to its already robust cloud offerings could help the search giant stand out in an intensely competitive cloud market. For Wiz’s founders and investors, the agreement cements their status as some of the most successful cybersecurity innovators in recent history.