Google will Buy Cybersecurity Firm Mandiant in $5.4 Billion

Google will pay $5.4 billion for Cybersecurity firm Mandiant which is (approximately Rs. 41,570 crores), adding heft as competitors Microsoft and Amazon strive to strengthen tighten security for its fast-growing cloud businesses.

Google's Cloud Computing Business

Google's cloud computing business would become strong through this agreement, which earns more than $19 billion (approximately Rs. 1,46,260 crore) each year, as well as its security operations and consulting services, the firm announced on Tuesday.

Microsoft Corp also eyeing a Buyout of Mandiant along with Google

Microsoft Corp. is also considering a buyout of Mandiant, according to published sources. The software behemoth has previously predicted a $20 billion investment in Cybersecurity over the next five years.

Google's offer of $23 per share indicates a premium of around 53% above Mandiant's stock price levels before the news that Microsoft was interested in a purchase.

Mandiant, which specializes in cyber-incident reactions and cybersecurity testing, became a self-contained entity last year when FireEye Inc, which obtained the company in 2013, auctioned its products business and the FireEye name to a consortium led by private equity group Symphony Technology Group for $1.2 billion.

Mandiant shares dipped 2% to $2532.20 in premarket trade on Tuesday, while Alphabet shares increased 0.2 percent to $2532.20.

Mandiant, an American Cybersecurity Firm

Mandiant is an American Cybersecurity business that is publicly traded. It gained notoriety in February 2013 when it issued a report directly accusing China of cyber espionage. Mandiant was bought by FireEye for more than $1 billion in shares and cash on December 30, 2013. Mandiant sold the FireEye product line, brand, and around 1300 workers to Symphony Technology Group for $1.2 billion in June 2021, following 7 years of stagnating growth under parent firm FireEye.

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

The transaction is likely to be completed later this year.

Thomas Kurian, CEO of Google Cloud Stated

"Organizations worldwide are facing unprecedented cybersecurity difficulties as the complexity and intensity of assaults traditionally used to target big countries are increasingly being used to target corporations in every industry," stated Thomas Kurian, CEO of Google Cloud, in a statement.

He further added, "We love to welcome Mandiant to Google Cloud to further expand our security operations suite and advisory services, and to assist clients in addressing their most critical security concerns."