Google closes $32B Wiz deal, creating the biggest startup exit in Israeli tech history

Google has officially closed its acquisition of Israeli cloud security startup Wiz, finalizing a $32 billion all-cash deal that stands as the largest exit in the history of Israel’s tech ecosystem and one of the biggest acquisitions ever made by the Internet giant.

The company announced the completion of the transaction on Wednesday, just ahead of the opening of Wall Street trading. Despite escalating geopolitical tensions in the Middle East, Google chose not to postpone the announcement, signaling confidence in the strategic importance of the deal.

Originally signed in March 2025, the transaction required a lengthy set of regulatory approvals across several jurisdictions before it could close. The final price tag represents a significant jump from Google’s first offer in July 2024, when the tech giant proposed a $23 billion acquisition. Wiz declined that offer, betting that market conditions—and its own growth—would justify a higher valuation.

That bet paid off. After renewed negotiations earlier this year, both sides agreed on the $32 billion cash deal, which also included a $3.2 billion termination clause should regulators have blocked the acquisition. For Israel’s startup ecosystem, the deal is historic. It is expected to generate the largest tax windfall ever produced by a tech exit in the country. Authorities estimate the government could collect around NIS 10 billion (roughly $3.2 billion) in tax revenue.

A large share of that will come from Wiz’s four founders—CEO Assaf Rappaport, CTO Ami Luttwak, VP Product Yinon Costica, and VP R&D Roy Reznik—who together hold about 40% of the company. Venture investors and employees are also expected to see substantial payouts. One of the biggest early backers, Cyberstarts, the venture fund founded by Gili Raanan, was Wiz’s first investor and still holds a stake estimated at around $1.5 billion, even after partially selling shares to Blackstone in 2021.

Employees are also among the major beneficiaries of the exit. Hundreds of Israeli Wiz staff members are expected to cash out stock options, generating roughly $2.5 billion in taxable income.

Wiz itself is a classic second-time-founders startup story. The founding team previously built Adallom, a cybersecurity company that Microsoft acquired for around $340 million. After the acquisition, the founders led Microsoft’s cybersecurity operations in Israel, where they helped turn the local office into one of the company’s most respected R&D hubs.

After leaving Microsoft, the team launched Wiz—initially under the name Beyond—again partnering with Cyberstarts to build the company’s early strategy and funding base. In just a few years, Wiz became one of the fastest-growing cybersecurity startups in the world. The company raised about $1.9 billion across several venture rounds, scaling from a $67 million valuation in its 2020 seed round to $12 billion by its final funding round in 2024.

Major global venture firms backed the startup along the way. Index Ventures holds roughly 12% of Wiz and is expected to receive about $3.8 billion from the deal as the British VC fund claims in their statement. Sequoia Capital’s estimated 10% stake could generate around $3.2 billion, while Insight Partners is expected to take home roughly $2.9 billion.

Beyond the founders and investors, Wiz’s workforce—about 1,800 employees worldwide, including roughly 1,000 in Israel—holds shares and stock options valued at approximately $3 billion. Google has also set aside an additional $1.5 billion in retention bonuses, to be paid in a mix of cash and Google stock for employees who stay after the acquisition.

Google leadership framed the deal as a strategic move to strengthen its cloud security offering as AI and cloud infrastructure become increasingly central to global business.