Google agreed to acquire cybersecurity company Mandiant for $5.4 billion, its second-biggest deal ever. With Mandiant, Alphabet’s Google gets more tools to protect its cloud clients by responding quickly to online threats. The company is working to recruit and support cloud customers amid stiff competition from Microsoft and Amazon.com.
Google will purchase Mandiant for $23 a share in an all-cash deal, according to a statement on Tuesday. Following the close of the deal, Mandiant will be part of Google’s cloud business.
Microsoft was also interested in Mandiant, but pulled out of talks more than a week ago, said two people with knowledge of the deliberations who asked not to be identified because the situation is private. Microsoft ended its takeover discussions on concerns that Mandiant’s collection of security businesses wasn’t a good enough strategic fit, according to one of the people.
The cloud business could help Google diversify beyond advertising, which comprises the bulk of its revenue and profit. Under chief executive officer Thomas Kurianwho took over in 2019, Google Cloud has sought myriad ways to expand, working to make the service more reliable and revamping its partnerships to engineer bespoke projects for more clients.
Google will purchase Mandiant for $23 a share in an all-cash deal, according to a statement on Tuesday. Following the close of the deal, Mandiant will be part of Google’s cloud business.
Microsoft was also interested in Mandiant, but pulled out of talks more than a week ago, said two people with knowledge of the deliberations who asked not to be identified because the situation is private. Microsoft ended its takeover discussions on concerns that Mandiant’s collection of security businesses wasn’t a good enough strategic fit, according to one of the people.
The cloud business could help Google diversify beyond advertising, which comprises the bulk of its revenue and profit. Under chief executive officer Thomas Kurianwho took over in 2019, Google Cloud has sought myriad ways to expand, working to make the service more reliable and revamping its partnerships to engineer bespoke projects for more clients.