Connect with us

CyberSecurity

Google to Intensify Cybersecurity Focus with Acquisition of Mandiant in $5.4 Billion Deal

The deal will be Google’s second-largest acquisition

Published

on

Google to Acquire Mandiant
Google to Acquire Mandiant

Google has announced its plans to acquire cybersecurity firm, Mandiant, for $5.4 billion and a goal to boost its cloud customers’ protection.

Google affirms that it will pay $23 per share for the publicly traded cybersecurity firm operating since 2004.

If the deal, which is expected to close later this year, gets approved by regulators, it will be Google’s second-largest acquisition ever behind its $12.5 billion Motorola Mobility deal in 2012, which was sold to Lenovo for $2.9 billion two years later. The tech giant’s third-largest acquisition is smart home product maker, Nest, bought for $3.2 billion in 2014.

Mandiant will join Google’s cloud computing division, which is yet to grow to the same size as Microsoft Azure or Amazon Web Services.

Thomas Kurian, CEO of Google Cloud, emphasised the unprecedented cybersecurity challenges faced by organisations globally, as the sophistication and severity of attacks that were previously used to target major governments are now being used to target companies in every industry.

He further stated the company’s delight in welcoming Mandiant to Google Cloud, with a goal to further enhance its security operations suite and advisory services, ultimately helping customers address their most important security challenges.

On Monday, following the gradual publicity of the information of Google’s interest in acquiring Mandiant, the company’s shares closed up 16%.

Mandiant has a market value of around $5.25 billion and was previously under the FireEye umbrella before the brand was sold. FireEye was credited with helping Microsoft discover the SolarWinds hack that attacked government systems in 2019 and 2020.

ALSO READ  Microsoft, DHL top most imitated brand for phishing attempts in Q2 2021

In a note to investors by Wedbush analyst Dan Ives, he said: “With cyber-attacks increasing by the day and cyber warfare underway from Russia/state-sponsored cyber-terrorism organisations, Google is doubling down on its cyber security footprint at the right time with Mandiant and looking to differentiate itself from the likes of behemoths Microsoft and Amazon in the cloud arms race.”

The acquisition of Mandiant is subject to customary closing conditions, including the receipt of Mandiant stockholder and regulatory approvals. Goldman Sachs & Co. LLC is acting as exclusive financial advisor, and Wilson Sonsini Goodrich & Rosati P.C. is acting as legal advisor to Mandiant.

 

Advertisement

​Joan Aimuengheuwa is a content writer who takes keen interest in the scopes of innovation among African startups. She thrives at meeting targets and expectations. Contact: [email protected]

Advertisement
Click to comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Advertisement
Advertisement

Facebook