The Mega-Deal: Google Buys WIZ

Alphabet, Google’s parent company, has agreed to acquire Wiz, a cloud security startup from Israel, for $32 billion in an all-cash transaction, marking its largest acquisition to date.

Announced on March 18, 2025, the deal aims to bolster Google Cloud’s cybersecurity offerings in its competition with Amazon Web Services and Microsoft Azure.

Wiz, founded in 2020, has grown rapidly, reaching over $700 million in annual recurring revenue by early 2025, reflecting a 70% annual growth rate. The agreement includes a $3.2 billion termination fee—over 10% of the deal value—if regulatory hurdles prevent closure, expected in 2026.

Previously, in July 2024, Wiz rejected a $23 billion offer from Google, opting for an IPO, which it later abandoned in favour of this higher bid. The deal values Wiz at roughly 46 times its current annualized revenue, doubling its $16 billion valuation from a secondary sale in 2024.

Wiz will operate independently within Google Cloud, maintaining multi-cloud support across major platforms like AWS and Azure.

However, there are a lot of critics in Israel because Google showed a pretty antisemitic and anti-Israel attitude.

Investments and Acquisitions in Israel (2020-)

Google, through its parent company Alphabet, has been actively involved in Israel’s tech ecosystem, often focusing on cybersecurity, AI, and cloud computing innovations.

Note! Not all investment details (e.g., exact amounts for smaller funding rounds) are publicly disclosed. Some activities may involve indirect participation via Alphabet’s investment arms like CapitalG or GV.

Acquisitions

1. Siemplify (2022)
   • Date: January 2022
   • Amount: Approximately $500 million
   • Details: Google acquired Siemplify, a Tel Aviv-based cybersecurity startup specializing in security orchestration, automation, and response (SOAR). The acquisition aimed to enhance Google Cloud’s Chronicle security platform, integrating Siemplify’s technology to improve threat detection and response capabilities.
2. Wiz (2025)
   • Date: Announced March 18, 2025 (pending regulatory approval, expected closure in 2026)
   • Amount: $32 billion

Investments

1. Salt Security (2022)
   • Date: February 2022
   • Amount: Led a $140 million Series D round (total funding for Salt Security reached $271 million)
   • Details: CapitalG, Alphabet’s independent growth fund, led this investment in Salt Security, an Israeli API security company based in Palo Alto with offices in Tel Aviv. The round valued Salt Security at $1.4 billion, making it a unicorn. The investment supported R&D expansion and international growth, capitalizing on the rising demand for API protection in digital transformation.
2. Google’s Broader Commitments in Israel (Ongoing Since 2020)
   • Date: Continuous initiatives, notably announced in 2022
   • Amount: $25 million pledged over five years (announced February 2022)
   • Details: While not a direct investment in a single company, Google committed $25 million to diversify Israel’s tech workforce, focusing on underrepresented groups like ultra-Orthodox women and Arab engineers. This initiative builds on programs like Adva (computer science training) and partnerships with organizations like Tsofen, indirectly fostering startup growth. This is more of a social investment but supports the ecosystem where Google operates.

• Unconfirmed or Smaller Deals: Google’s venture arms, GV (formerly Google Ventures) and CapitalG, may have participated in smaller funding rounds for Israeli startups since 2020, but specific details are often undisclosed unless highlighted in major announcements. For instance, GV has historically backed Israeli firms, but no significant post-2020 deals beyond Salt Security are widely documented in the provided timeframe.
• R&D Presence: Google has maintained a strong R&D presence in Israel since acquiring Waze in 2013 for $1.1 billion (pre-2020), with centres in Tel Aviv and Haifa employing hundreds. While not new investments, these centres have expanded operations post-2020, supporting local innovation that feeds into acquisitions like Wiz.
• Project Nimbus: In 2021, Google and Amazon jointly won a $1.2 billion contract to provide cloud services to the Israeli government (Project Nimbus). While not an investment or acquisition, this deal underscores Google’s strategic engagement with Israel, potentially influencing its interest in local cybersecurity firms like Wiz.

Since 2020, Google’s notable acquisitions in Israel include Siemplify ($500 million) and Wiz ($32 billion), totalling $32.5 billion in direct acquisition spending.

Investment-wise, CapitalG’s $140 million round in Salt Security stands out, alongside the $25 million workforce diversity pledge.

These moves reflect Google’s focus on bolstering its cloud and cybersecurity capabilities, leveraging Israel’s robust tech talent pool.

This robust pool exists because almost all bureaucratic restrictions are abolished by the state. The deep state has no say. Imagine what Israel would be if Israel had a truly free market.