Google officially announced the acquisition of a network security company with a cash of $23 per share.

Google officially announced that it will acquire a network security company for $23 per share in cash. With more and more cyber attacks, Google is working with Mandiant to strengthen its network security layout. Google officially announced that it will acquire a network security company for $23 per share in cash.

Google officially announced the acquisition of a network security company 1 for $23 per share in cash. Google's parent company Alphabet announced on Tuesday that it plans to acquire cyber security company Mandiant for about $5.4 billion. If the transaction is concluded, it will become the second largest acquisition in Google's history, second only to the acquisition of Motorola Mobility for 12 in 20 12. Google's third largest acquisition is smart home manufacturer Nest, which was acquired by 20 14 for $3.2 billion.

Mandiant will join Google's cloud computing division. Earlier there were rumors that Microsoft was a potential buyer of Mandiant. Microsoft and Google have been fighting for control of the cloud service market.

The transaction can support Google's cloud computing business. Google's cloud business generates more than $654.38+09 billion in profits every year, but it also loses billions of dollars every year. The acquisition of Mandiant can help enhance its cloud security business and better compete with Microsoft Azure cloud services.

It is reported that Mandiant has a market value of about 5.25 billion US dollars, focusing on network accident response and network security testing. It used to belong to FireEye and was later sold.

The transaction is expected to be completed later this year.

Thomas Courrian, CEO of Google Cloud, said in a statement: "Cyber attacks against major governments in the past are now used by companies in various industries, and organizations around the world are facing unprecedented cyber security challenges." "We look forward to welcoming Mandiant to Google Cloud to further enhance our security operation suite and consulting services and help customers solve security problems."

Ruth Porat, chief financial officer of Alphabet, said of Mandiant: "An investment like Mandiant is necessary to compete with Amazon Web Services, the largest cloud service provider and market leader, and Microsoft Azure, which ranks second."

She added: "The way we look at investment is that we are obviously not competing with our peers in scale, but in an accelerating market." "Of course, we still focus on the long-term path of profitability, but it needs to be clear that in the short term, we will continue to fully invest in supporting cloud computing."

In a previous blog post, the company said that Mandiant would match Chronicle's products. "Google Cloud's Chronicle and Siemplify solutions and Mandiant's Automated Defense's security operation tools can help customers analyze, prioritize and simplify threat response, and take Mandiant's professional skills as an extension of their team," the blog post said. Chronicle was originally an independent company under Alphabet "Other Bets", but it was merged into Google's cloud business in 20 19.

In a report to investors on Tuesday, Dan Ives, an analyst at investment bank Wedbush, wrote, "With the increasing number of cyber attacks, Google is working with Mandiant to strengthen its network security layout, and hopes to open the gap with giants such as Microsoft and Amazon in the cloud computing competition."

Ives said that the transaction is expected to have a "major chain reaction" in the field of cyber security. "Amazon and Microsoft will now be forced to merge and acquire and further expand their cloud platforms." Internet companies such as Varonis, Tenable, CyberArk, Qualys, Rapid7, SailPoint and Ping are all potential M&A candidates in the field of network security (in a few private enterprises), because these providers are all focused on protecting the next generation cloud workload from cyber attacks. "

Network security is also playing an increasingly important role in the cloud market.

Google officially announced that it will acquire a network security company for $23 per share in cash. 2 Google announced the acquisition of Mandiant, a network security company, for $23 in cash per share, with a total transaction amount of about $5.4 billion, including Mandiant's net cash.

Google said in a statement that network security is the top priority of global security issues, and "cloud" represents a new way to change the security model. It can help enterprises to cope with and protect themselves from all kinds of network threats and accelerate digital transformation.

The acquisition of Mandiant will complement the existing advantages of Google Cloud in terms of security. With the addition of Mandiant, Google Cloud will strengthen its existing products and provide an "end-to-end" security operation suite to provide customers with stronger support.

Google said: "As a recognized leader in strategic security consulting and incident response services, Mandiant has real-time and in-depth threat information obtained on the front line of network security. Combining Google Cloud's existing security products will ensure that global enterprises are protected at every stage of the security life cycle. "

At the meeting, Polat elaborated on the reasons for buying Mandiant. She said that the acquisition will play an important role in Google's fast-growing cloud computing division.

Polat said: "Mandiant plays a special role in the field of network security, enabling us to obtain end-to-end security solutions. This is our commitment in network security and our most important work in cloud computing. We must first ensure that we have depth and breadth in the vertical field of the industry, so as to solve the special needs of various industries such as finance, retail and health care. "

She added that the acquisition of a company like Mandiant was necessary for Alphabet. The company's main competitors in cloud computing business are Amazon AWS and Microsoft Azure. It is reported that Microsoft had plans to acquire Mandiant before, but they withdrew from the acquisition negotiations earlier this year.

Polat said: "Today's market is also growing rapidly, and friends have also expanded their scale. We are still concerned about profitability. Obviously, we will continue to invest in the near future to provide comprehensive support for the cloud computing business. "

In the fourth quarter of 2002/kloc-0, Google's cloud service revenue was $5.54 billion, up 45% year-on-year, and its operating loss was $890 million, which was narrower than the loss of $0/65438+400 million a year ago. However, compared with the loss of $644 million in the third quarter, it expanded month by month.

Polat said that one of the most important requirements of cloud customers is the ability of AI and data automation. Thomas Courrian, CEO of Google Cloud Computing, said in his blog that in terms of security, they should do faster and more complex threat detection.

The company said that Mandiant will match the company's products from Chronicle, which was originally an independent company in Alphabet's "other investments" and merged into Google's cloud business in 20 19.

The blog post wrote: "Google Cloud Services' Chronicle and Siemplify solutions can help customers analyze, prioritize and simplify threats by using Mandiant's security operation tools in automatic defense, and take Mandiant's expertise as a virtual expansion of the team. "

Mandiant said in its latest annual report that its customers include some American government agencies. In 2020, the company said it was cooperating with the FBI to investigate cyber attacks.

Google officially announced the acquisition of a network security company with a cash of $23 per share. Google announced on Tuesday (March 8) that it plans to acquire Mandiant to better protect its cloud computing service customers. The technology giant said it would pay $23 per share to the network security company founded in 2004, which made the deal worth about $5.4 billion.

The transaction is expected to be completed later this year. If it is finally approved by the regulatory authorities, it will be the second largest acquisition in Google's history, second only to its acquisition of Motorola for 12. Google's third largest acquisition was in 20 14, when it acquired Nest, a smart home product manufacturer, for $3.2 billion.

Mandiant has a market value of about $5.25 billion. After the acquisition, Mandiant will join Google's cloud computing division. Thomas Courrian, CEO of Google Cloud Computing, said in a statement: "The world is facing unprecedented cyber security challenges. In the past, the attack was mainly aimed at the government, and now the target includes companies in every industry. "

Kurian added: "We look forward to Mandiant joining Google Cloud, further strengthening our security operation suite and consulting services, and helping customers solve their most important security challenges."

Yesterday, the news was first released by the media, and Mandiant's share price closed up 16% on Monday.

Ives told investors that this transaction may have a "significant impact" on the entire network security field. "Amazon and Microsoft, the backbone of cloud computing, are now facing the pressure of mergers and acquisitions, which may further expand the armament scale of their cloud computing platforms."

Ives pointed out that "there are also some network security companies that are becoming potential M&A targets." Influenced by international geopolitics, these companies have low valuations recently, which may be the best time for technology giants to acquire them.