DOJ Antitrust Division Reviewing Google-Wiz Deal

Mogin Law LLP
Contact

Mogin Law LLP

Deal would mark another in a series of cloud security and AI acquisitions.

The Justice Department’s Antitrust Division is reviewing Google’s planned $32 billion acquisition of Wiz Inc. to determine if the combination would illegally limit competition in the cloud security marketplace, according to a report by Bloomberg’s Josh Sisco, citing “people with knowledge of the matter.” There is no doubt that the companies expected the deal to be examined. Google agreed to pay Wiz $3.2 billion if the deal does not go through, Sisco noted.

(Note: This updated information was added to the Mogin Law Artificial Intelligence Acquisitions Table. Read our story.)

Who is Wiz? Who are its competitors?

A rapidly growing cloud security company known for safeguarding digital infrastructures, Wiz has gained traction among enterprises seeking advanced solutions to protect their cloud environments from an evolving array of threats. Hailed for its simplicity, scalability, and visibility across complex cloud ecosystems, Wiz technology has become a leading choice for organizations undergoing digital transformation.

Wiz cloud security utilizes artificial intelligence, specifically in areas like AI-powered threat detection, AI-driven remediation, and AI Security Posture Management (AI-SPM). Wiz integrates AI to enhance its cloud security platform, designed to make it more efficient and effective in identifying and responding to threats.

Wiz competes with several companies that offer solutions designed to protect cloud environments for enterprises. They include:

Palo Alto Networks: An established leader in cybersecurity, the company provides Prisma Cloud, a comprehensive cloud-native security platform covering infrastructure, applications, and data across major public clouds.

Microsoft: As a part of Microsoft’s security suite, Defender for Cloud offers integrated security management and threat protection for hybrid and cloud-native environments.

SentinelOne: Although historically focused on endpoint security, SentinelOne has expanded its offerings into the cloud security space, providing advanced threat detection and automated response capabilities.

CrowdStrike: Known for its Falcon platform, CrowdStrike delivers cloud workload protection and continuous threat monitoring for cloud environments.

Check Point: Check Point’s CloudGuard platform delivers security for cloud infrastructure, applications, and workloads, enabling visibility and compliance across cloud environments.

Lacework: Specializing in cloud security posture management and threat detection, Lacework helps organizations secure their cloud workloads and identify vulnerabilities across multi-cloud environments.

Orca Security: A direct competitor to Wiz, Orca Security is recognized for its agentless cloud security platform that provides deep visibility and risk assessment for cloud assets. The companies are in litigation over patent infringement in federal court in Delaware.

Trend Micro: The company offers cloud security solutions for hybrid environments, including threat detection, data protection, and compliance tools.

Orca Security Litigation

Wiz competitor Orca Security sued the company in July 2023, alleging Wiz infringed upon two of its patents related to securing virtual cloud assets and virtual machines.

In fact, Orca claims Wiz built its business by copying Orca’s technology and ideas, even alleging that the Wiz founders left Microsoft to create a clone of Orca’s platform after hearing a presentation about it in 2019. Orca also accuses Wiz of copying its marketing materials and hiring its former patent attorney.

Wiz has denied the allegations as baseless and has filed counterclaims against Orca, accusing it of infringing on five of Wiz’s patents and misusing confidential information.

The court rejected Wiz’s request to dismiss Orca’s case. A trial date has been set for Dec. 8, 2025 (Orca Security Ltd. v. Wiz, Inc., No. 1:23-cv-00758, D.Del.).

Major Cloud Security Acquisitions

The cloud security sector has undergone rapid consolidation as big technology companies work to enhance their capabilities and grow their shares of the market. Here are some noteworthy acquisitions since 2015:

Palo Alto Networks and Evident.io (2018): Palo Alto Networks acquired Evident.io, a cloud infrastructure security company, for $300 million to strengthen its cloud security portfolio.

McAfee and Skyhigh Networks (2017): McAfee completed the acquisition of Skyhigh Networks, a leader in cloud access security broker (CASB) technology, expanding its protection for cloud services.

Microsoft and Adallom (2015): Microsoft purchased Israeli cloud security firm Adallom for approximately $320 million, forming the basis for Microsoft’s cloud security offerings, including Microsoft Defender for Cloud.

Proofpoint and Cloudmark (2017): Proofpoint acquired Cloudmark, a provider of messaging security for the cloud, for $110 million, broadening its email and network security solutions.

Check Point and Dome9 (2018): Check Point acquired Dome9, a cloud infrastructure security and compliance company, for about $175 million to expand its CloudGuard solutions.

VMware and CloudHealth (2018): VMware bought CloudHealth Technologies, specializing in cloud management and security, for approximately $500 million.

SentinelOne and Attivo Networks (2022): SentinelOne acquired Attivo Networks, a leader in identity security and threat detection for cloud environments, for $616.5 million.

CrowdStrike and Humio (2021): CrowdStrike acquired Humio, a cloud log management and observability platform, for $400 million to bolster its cloud-native threat detection.

Palo Alto Networks and Twistlock (2019): Palo Alto Networks purchased Twistlock, a container and cloud-native security company, for $410 million, further cementing its Prisma Cloud offering.

Rapid7 and Alcide.IO (2021): Rapid7 acquired Israeli cloud security startup, Alcide, in 2021 for $50 million to enhance cloud workload and Kubernetes security.

Lacework and Soluble (2021): Lacework acquired Soluble, a startup focused on infrastructure as code (IaC) security, to expand its cloud security management capabilities.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Mogin Law LLP

Written by:

Mogin Law LLP
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Mogin Law LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide