Google to buy security firm Mandiant for $5.4 billion


Google is buying security firm Mandiant for US$5.4 billion, 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


Please enter your comment!
Please enter your name here