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The deal will enhance Google’s cloud computing business, which generates more than $19 billion annually, and bolster its security operations and advisory services, the company said on Tuesday.
The Information reported the news first on Monday.
Microsoft Corp (NASDAQ:MSFT) was also said to be eyeing a buyout of Mandiant, according to news reports. The software giant had previously forecast spending $20 billion spend on cybersecurity over the next five years.
Google’s offer of $23 per share represents a premium of about 53% to Mandiant’s stock price levels before reports that Microsoft was eyeing a deal.
Shares of Mandiant fell 2%, while those of Alphabet (NASDAQ:GOOGL) rose 0.2% to $2532.20 in premarket trading on Tuesday.
Mandiant, which focuses on cyber-incident response and cybersecurity testing, became a standalone entity last year when FireEye (NASDAQ:MNDT) Inc, which acquired the company in 2013, sold its products business and the FireEye name for $1.2 billion to a consortium led by private equity firm Symphony Technology Group.
The firm has become a go-to for news organizations and companies for investigating cyberattacks, including recent breaches at News Corp (NASDAQ:NWSA) and Nvidia (NASDAQ:NVDA) Corp.
The deal is expected to close later this year.
