Google is buying cybersecurity company Mandiant for $5.4 billion

FILE PHOTO: The Google app logo is seen on a smartphone in this photo illustration
FILE PHOTO: The Google app logo is seen on a smartphone in this photo taken on September 15, 2017. REUTERS/Dado Ruvic/Illustration

March 8, 2022

(Reuters) – Alphabet Inc’s Google is buying cybersecurity firm Mandiant Inc for $5.4 billion, adding weight as rivals Microsoft and Amazon also seek to improve security for their fast-growing cloud units.

The deal will enhance Google’s cloud computing business, which generates more than $19 billion annually, and strengthen its security operations and consulting services, the company said Tuesday.

The information first reported the news on Monday.

According to news reports, Microsoft Corp is also said to be considering a takeover of Mandiant. The software giant had previously forecast that it would spend $20 billion on cybersecurity over the next five years.

Google’s $23-per-share offer represents a roughly 53% premium to Mandiant’s stock price ahead of reports that Microsoft is seeking a deal.

Mandiant’s shares fell 2%, while Alphabet’s shares rose 0.2% to $2532.20 in premarket trading on Tuesday.

Mandiant, which focuses on cyber incident response and cybersecurity testing, became a separate entity last year when FireEye Inc, which acquired the company in 2013, sold its product business and the FireEye name to a consortium for $1.2 billion technology group sold to the leadership of private equity firm Symphony.

The firm has become a go-to resource for news organizations and corporations to investigate cyberattacks, including recent breaches at News Corp and Nvidia Corp.

The deal is expected to close later this year.

(Reporting by Eva Mathews and Nivedita Balu in Bengaluru; Editing by Vinay Dwivedi and Saumyadeb Chakrabarty) Google is buying cybersecurity company Mandiant for $5.4 billion

Caroline Bleakley

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