Google agreed to buy cybersecurity firm Mandiant Inc for $5.4 billion, adding internet security products that will support the tech giant's cloud computing business as it faces bigger competitors Amazon Web Services and Microsoft Corp.
As it seeks to expand its third-place cloud infrastructure unit, which sells computing power and storage over the internet, purchasing Mandiant will provide Google with a more complete suite of software to protect clients by responding quickly to online threats.
Citing Bloomberg Wednesday (9/3), Google will pay US$ 23 per share for Mandiant in a cash deal. Mandiant will be managed under Google's cloud business at the close of the acquisition which is expected later this year.
Phil Venables, Google Cloud's chief information security officer, dismissed concerns that the regulatory review process might take a long time. He also added that the deal increased competition in cybersecurity.
Previously, Microsoft was also interested in Mandiant, but withdrew from the talks more than a week ago, said two people familiar with the deliberations who asked not to be named because the negotiations are private.
Building a cloud business is one way Google is working to diversify away from digital advertising, which makes up the bulk of its revenue and profits.
Under Thomas Kurian, who took over as chief executive officer of the cloud division in 2019, Google has been aggressively pursuing new business, working to make services more reliable and renewing its partnerships to design bespoke projects for more clients.
For information, Google's cloud division sales grew 47% in 2021, but competitors maintained their lead in the fourth quarter of 2021, Google controlled 10% of the cloud infrastructure provider market, while Amazon Web Services had 33% and Microsoft Azure had 21%, according to data. from the Synergy Research Group.
Meanwhile, Mandiant has more than 600 security consultants to assist clients and 300 intelligence analysts, and CEO Kevin Mandia said at a press conference that he hopes the partnership with Google will expand reach and automate expertise.
“What makes Mandiant excited about this partnership with Google is that we can leverage our expertise and intel at Google scale to secure the cloud, and we can also automate our expertise,” Mandia said.
Mandiant became an independent company last year when FireEye Inc sold its security products business for $1.2 billion to a consortium led by the Symphony Technology Group. FireEye had acquired Mandiant in 2013.