Google wins EU antitrust approval for record $32 billion Wiz deal

European antitrust regulators have cleared Alphabet’s Google to proceed with its planned $32 billion acquisition of Wiz, removing a major regulatory obstacle in what is the largest-ever purchase of an Israeli-founded technology company, according to Israeli media reports.

The European Commission said it found that the Google–Wiz deal would not raise competition concerns within the European Economic Area, effectively giving the green light for the transaction to move forward.

The deal is expected to generate an estimated 10 billion shekels (about $3.2 billion) in tax revenues for Israel. Final completion is anticipated later this year, subject to remaining regulatory approvals in Australia, South Africa, Türkiye and Israel.

The acquisition, first announced in March last year against the backdrop of Israel’s war with Hamas in Gaza, surpasses the previous record for an Israeli-founded company, set in 2017 when Intel acquired Jerusalem-based Mobileye for $15.3 billion. For Google, the Wiz purchase is the largest acquisition in its history, more than twice the size of its $12.5 billion takeover of Motorola Mobility in 2012.

Under the terms of the deal, Wiz will become part of Google’s Cloud division while continuing to operate independently. The company, which says its cybersecurity platform is designed to protect applications built and run in the cloud, employs around 1,800 people. Google has said the workforce will remain intact once the transaction is finalised.

Responding to the European Commission’s decision, Wiz described the approval as a “significant step toward our goal of joining Google Cloud to redefine the future of AI and cloud security.”

“Since this journey began, Wiz has remained steadfast in our mission to empower cloud builders and defenders,” the company said in an emailed statement. “By combining Wiz’s deep knowledge of cloud and code with Google’s expertise and scale, we will be able to offer customers more choice in defending against today’s complex threats.”

The acquisition is expected to strengthen Google’s cloud security capabilities as it competes with rivals such as Amazon and Microsoft, as well as major cybersecurity firms including Palo Alto Networks and CrowdStrike.

Beyond its strategic importance for Google, the deal carries significant macroeconomic implications for Israel. Although Wiz is formally a US company — with its parent entity and intellectual property registered in the United States — its four founders and many of its employees are Israeli residents, and some of its investors are also based in Israel. As a result, the Israeli state is set to benefit from a substantial tax windfall once the transaction is completed.

Wiz was founded in early 2020 by Assaf Rappaport, 40, Yinon Costica, 41, Ami Luttwak, 40, and Roy Reznik, 35, who met while serving together for nearly a decade in the Israel Defence Forces. All four are alumni of the elite military intelligence Unit 8200, which has produced numerous prominent tech entrepreneurs and companies, including Nice, Palo Alto Networks, CyberArk and Waze.

The founders previously launched their first startup, Tel Aviv-based cloud security firm Adallom, in 2012. That company was sold to Microsoft three years later for $320 million.

Wiz’s rapid rise has already placed all four founders on Forbes’ list of the world’s wealthiest individuals, with each estimated to have a net worth of around $1 billion.

By Tamilla Hasanova