Alphabet Inc. is Mandiant Inc., a transaction that could unleash the long-awaited integration across the cybersecurity industry. Will be acquired for approximately $ 5.4 billion.
Google’s parent company announced on Tuesday morning that it plans to purchase the Mandiant MNDT.
With $ 23 in cash per share, we plan to integrate the company into Google Cloud. Mandiant shares fell 2.2% on Tuesday to around $ 22. This is after a 16.1% increase in the Monday session following reports from information that trading negotiations are underway. Shares have risen about 45% since the beginning of February, boosted by previous reports of acquisition interests from Microsoft Corp. MSFT.
However, Wedbush analyst Dan Ives believes Microsoft will never drop out of the game.
“We are confident that this transaction will have a significant spillover effect across the cybersecurity space, as the cloud underpins Amazon AMZN.
And Microsoft MSFT,
There will be pressure on M & A now, “Wedbush analyst Dan Ives wrote.
The cybersecurity industry has long been seen as a technology sector that needs to be integrated, as companies are forced to contract dozens of vendors for different security products to meet different needs. There is a shortage of cybersecurity professionals, leaving behind large-scale security operations like Cisco Systems Inc. CSCO.
Desperate for the talent to put together a product that addresses a variety of security issues.
Among the candidates for the public acquisition, Ives is Varonis Systems Inc. VRNS,
Tenable Holdings Ltd. TENB,
CyberArk Software Ltd. CYBR,
Qualys Inc. QLYS,
Rapid7 Inc. RPD,
SailPoint Technologies Holdings Inc. SAIL,
And Ping Identity Holding Corp. PING,
As a “outstanding” name.
Read: “The Cold War is over, I think it’s resumed” — Putin’s cyberwarfare judo tactics and how to deal with the fear of hacking
“We were bullish in the cybersecurity industry because we believe that spending intent and the group’s strategic relevance remain at a high level,” said Matthew Hedberg, an analyst at RBC Capital Markets.
“This doesn’t mean that other large tech vendors need to keep up with large-scale cybersecurity acquisitions in the short term, but it further demonstrates the importance of cybersecurity in the cloud-first world. We look forward to both big and small technologies. Vendors will continue to invest (organically and inorganically) to take advantage of the strong market tailwind, “written RBC Capital Markets analyst Matthew Hedberg. I am.
Alphabet GOOG,
Google,
Mandiant hopes that if the transaction can be approved during antitrust scrutiny, it will complement the existing security products contained in Google Cloud.
“With the addition of Mandiant, Google Cloud will enhance these services and provide an end-to-end security operations suite with even greater capabilities to support customers across the cloud and on-premises environments,” the company said. Described in the release.
read: The ransomware boom comes from a gang that acts like a cloud software unicorn — a “really incredible business model”
Piper Sandler analyst Thomas Champion said the deal, given that Mandiant “looks like having a reliable IP in security” and a consulting business that can help Google’s corporate ambitions. Wrote that there seems to be a “strategic meaning” for the alphabet.
According to Baird analyst Colin Sebastian, the deal is the second largest in Google’s history and “far beyond the company’s typical goals.”
“Google generally prefers to build products organically, so we believe this combination shows how important security is to GCP. [Google Cloud Platform] Not only from a product perspective, but also some of Mandiant’s core competencies, especially when replicating advisory services, “he writes.
..
