Google is buying security firm Mandiant for US$5.4-billion, adding heft as rivals Microsoft and Amazon also look to beef up security for their fast-growing cloud units.
The deal will enhance Google’s cloud computing business, which generates more than $19-billion annually, and bolster its security operations and advisory services, the company said on Tuesday.
Microsoft was also said to be eyeing a buyout of Mandiant, according to news reports. The software giant had previously forecast spending $20-billion spend on cybersecurity over the next five years.
Google’s offer of $23/share represents a premium of about 53% to Mandiant’s stock price levels before reports that Microsoft was eyeing a deal.
Shares of Mandiant fell 2%, while those of Google parent Alphabet rose 0.2% to $2 532.20 in premarket trading on Tuesday.
Mandiant, which focuses on cyber-incident response and cybersecurity testing, became a standalone entity last year when FireEye, which acquired the company in 2013, sold its products business and the FireEye name for $1.2-billion to a consortium led by private equity firm Symphony Technology Group.
The firm has become a go-to for news organisations and companies for investigating cyberattacks, including recent breaches at News Corp and Nvidia.
The deal is expected to close later this year. — Eva Mathews and Nivedita Balu, (c) 2022 Reuters