In a monumental deal, Alphabet, the parent company of Google, has acquired Wiz, a cloud security startup, for a staggering $32 billion, marking the largest acquisition in the company's history. According to sources, the deal has been in the works for nearly a year, with Thomas Kurian, CEO of Google Cloud, currently in Europe, and Assaf Rappaport, CEO of Wiz, in Israel.

This acquisition is a significant milestone for Alphabet, as it looks to bolster its cloud security capabilities. Wiz, a New York-based startup, has been making waves in the industry with its innovative approach to cloud security. The company has seen remarkable growth, crossing $500 million in annual recurring revenue (ARR) last year and is on track to double that to $1 billion this year.

This deal is not the first time Alphabet has shown interest in Wiz. Last year, Google offered to buy Wiz for $23 billion, but the deal fell apart due to concerns over antitrust issues, Wiz's autonomy under Google Cloud, and the price tag. At the time, Wiz was valued at $12 billion. However, the company went on to run a secondary sale at a $16 billion valuation, and rumors suggested it was in the process of fundraising at an even higher number.

In an interview at Disrupt last year, Rappaport didn't rule out the possibility of an acquisition in the future, but he also confirmed that it was Wiz who walked away from the deal, describing it as "the toughest decision ever" but also maintaining it was "the right choice." It seems that his instinct has held true, as the company has now secured a significantly higher valuation.

This acquisition is likely to have significant implications for the cloud security industry, as Alphabet looks to leverage Wiz's expertise to enhance its own cloud offerings. The deal also underscores the growing importance of cloud security in the technology landscape. With cyber threats on the rise, companies are increasingly looking to bolster their security capabilities, and this acquisition is a clear indication of Alphabet's commitment to this area.

As the deal is finalized, it will be interesting to see how Wiz's technology and expertise are integrated into Google Cloud's offerings. The acquisition is also likely to have a ripple effect on the wider cloud security market, as companies look to respond to Alphabet's move. With the deal valued at a record-breaking $32 billion, it's clear that Alphabet is making a significant bet on the future of cloud security.

More details on the acquisition are expected to emerge in the coming days and weeks. For now, it's clear that Alphabet's acquisition of Wiz marks a significant shift in the cloud security landscape, and one that will have far-reaching implications for the industry.