Google announced that it will acquire cybersecurity company Mandiant for $23 per share in cash, in a transaction totalling approximately $5.4 billion, including Mandiant’s net cash. In a statement, Google said that cybersecurity is a global security priority, and that “cloud” represents a new way to change the security paradigm. It helps businesses respond to and protect themselves from a variety of cyber threats, while also accelerating digital transformation. The acquisition of Mandiant will complement the existing advantages of “Google Cloud” in terms of security.
Mandiant was originally founded in 2004 as a private cybersecurity company. In 2013, it was acquired by FireEye, an American cybersecurity company, for $1 billion. In June 2021, Mandiant acquired the FireEye product line name and approximately 1300 employees sold to Symphony Technology Group. The remaining organization was renamed Mandiant to focus on Mandiant Advantage and other services. For the past 18 years, Mandiant has provided unparalleled front-line expertise and industry-leading security threat intelligence. Known for its powerful network security detection capabilities.
A month before Google confirmed the acquisition, there was also news that Microsoft was in talks with Mandiant about the acquisition, but judging from the results, it was clear that Microsoft had failed in this acquisition. Alphabet CFO Ruth Porat also said of Mandiant: “An investment like Mandiant is good for Google to compete with the largest cloud provider, market leader Amazon Web Services and No. 2 Microsoft Azure. ”
From Google’s point of view, the acquisition of Mandiant makes a lot of sense. In this way, Google will not only strengthen its cloud platform but also use it to market itself to large enterprises around the world that lack security protection capabilities. From the perspective of Google’s competitive relationship with Microsoft and Amazon in the field of cloud computing, this transaction may bring a series of major chain reactions. Microsoft and Amazon may be forced to join the ranks of mergers and acquisitions, in order to further strengthen their cloud platforms, in order to maintain their position in the field of cloud computing. Google said the acquisition of Mandiant is expected to close later this year, pending regulatory and shareholder approval.
